Czech Republic

The Czech Republic (Czechia) is a landlocked country in the heart of Central Europe, bordered by Germany, Poland, Austria and Slovakia. It became an independent state in 1993 following the peaceful dissolution of Czechoslovakia, and its GDP amounted to approximately EUR 347 billion in 2025. Located within a few hours of major German and Central European industrial centers, the country is closely tied to Germany, its largest trading partner.

The Czech Republic is one of the most industrialized economies in the EU, with industry accounting for around a quarter of gross value added, well above the EU average of about 19%. Automotive manufacturing is the backbone of this industrial base: Škoda Auto (Volkswagen Group), Hyundai and Toyota together produced around 1.45 million passenger cars in 2025, more than 90% of which were exported, supported by a dense network of domestic and international suppliers. Vehicle production is concentrated mainly in Central and Northeast Bohemia and in the Moravian-Silesian Region. Asian manufacturers such as Panasonic, Daikin, Denso and Foxconn also operate production sites in the country.

Beyond automotive, the Czech Republic has strong capabilities in mechanical engineering, electronics, ICT and aerospace. Its skilled engineering workforce, central location and close integration into German and wider European supply chains make it an established production and business hub, with investment increasingly directed towards higher-value-added manufacturing, automation, digital technologies and research and development.
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