Industrial production in the Czech Republic has a long tradition which currently contributes to 35% of GDP (62.3% services, 2.8% agriculture). Over 40% of all economically active citizens work in the industrial sector. The main sectors of Czech industrial production are: automotive, aerospace, electrical and electronics, manufactruring, plastics and energy.  Key emerging sectors are pharmaceuticals, nanotechnology and software development. 


The automotive sector is at the heart of Czech industry and leads the country’s exports. Apart from highly successful foreign OEM investments (e.g. Volkswagen, Toyota-Peugeot-Citroen, Iveco, Hyundai), the country hosts hundreds of automotive suppliers. The recently opened TPCA car plant (Toyota Peugeot Citroen Automobile) is sourcing 75% of components locally.

Projects: Automotive Database     


Among the EU accession countries of Central and Eastern Europe, the Czech Republic and Poland are the biggest aerospace players, with around 10,000 people directly employed in the sector in each country. Many more workers are indirectly employed in the supply chain and service sectors of the industry.

Electronics and Electrical:

The Czech microelectronics and electronics industry has been around for over 120 years. The former Czechoslovakia was home to the Tesla conglomerate with over 60 subsidiaries around the country, many of which still exist, offering foreign investors long term experience within the Czech microelectronics and electronics markets. The electronics and microelectronics industry with its 180,000 employees is the second largest in the Czech Republic.


With the accession to the EU of the countries of Central and Eastern Europe (CEE) vast new markets have opened up to manufacturers of FMCG goods. The disposable income of these countries' populations has also been steadily rising creating even greater opportunities for product sales.


Investment into the manufacturing sector offers excellent potential due to the Czech Republic’s long and rich industrial heritage. The Czech Republic is one of the most successful transition economies in attracting foreign direct investment. The introduction of investment incentives in 1998 has stimulated a massive inflow of FDI into both greenfield and brownfield projects and since 1993 more than EUR 74 billion in FDI has been recorded.


Central and Eastern Europe holds great potential for the European plastics industry, including injection moulding, thermoforming and packaging production. Lower labour costs, together with a well-educated labour force, mean the region is proving a magnet for global investment in new plastics plants.


In 2011 the Czech republic had a total installed renewable capacity (biomass+geothermal+hydroelectricity+solar+wind) of 4,178 megawatts. Over the previous 5 years, the total installed renewable energy capacity has increased by 2,591 MW (21,36%) on a 5 year compound growth basis. Globally, the Czech Republic renewable energy market ranks number 39 for total installed renewable capacity.