Korean Auto Parts Makers Target European Supply Chains in Czech Republic, the EU's "Third-Largest Auto Producer"

“Czech Future Mobility Forum and Global Partnering Day” Held
One-on-One Consultations with Volkswagen Group’s Skoda and Others

Amid the shift to electrification and the restructuring of global supply chains, 17 Korean auto parts companies are stepping up efforts to enter the local supply chain in the Czech Republic, one of the European Union's (EU) three largest auto-producing countries.

The Korea Trade-Investment Promotion Agency (KOTRA) said on October 25 that it held the “Czech Future Mobility Forum and Global Partnering Day” business-matching event in Prague on October 23 to help Korean parts companies diversify their European supply chains. The Czech Republic is the EU's third-largest auto-producing country after Germany and Spain, producing about 1.44 million passenger cars last year. As the two countries' industrial cooperation has gained momentum following the recent award of a nuclear power plant construction project in Korea, the event also opened the door to concrete cooperation in future mobility supply chains.

The 17 Korean companies at the event held one-on-one business consultations with the purchasing department of Skoda, a Volkswagen Group passenger car brand, and local Tier 1 and Tier 2 suppliers. Skoda, an automaker with annual revenue of 30.1 billion euros (about KRW 45 trillion), has recently been pursuing an aggressive expansion of its electrified lineup.

The consultations focused on 16 items across six areas specifically requested by Skoda: exterior and lighting, doors and opening systems, interiors, thermal management, metals and electric vehicles, and general purchasing. The parties discussed the potential applications of products, supply terms, and procedures for registering new suppliers, focusing on items Korean companies are equipped to supply, including automotive lighting and glass, window regulators, flush door handles, heating, ventilation and air conditioning (HVAC) and thermal management systems, battery cases and covers, and molds and inspection equipment.

About 10 major Tier 1 and Tier 2 suppliers from the Czech Republic and elsewhere in Europe also took part, including Hutchinson, a global parts supplier with annual revenue of 5 billion euros. Their participation broadened opportunities for consultations, from direct deliveries to automakers to entering supply chains through parts suppliers. Hutchinson's Rokycany plant in the Czech Republic sought companies able to precision-machine steel and aluminum tubes into custom shapes and handle small orders.

A representative of Korean Company A, which took part in the event, said, “We were able to introduce our Czech production base and our experience and capabilities in supplying European automakers to Skoda's purchasing managers.” The representative added, “Building on these consultations, we will expand our customer base in Europe and diversify our buyers.”

At a future mobility cooperation forum held ahead of the consultations, automakers from both countries discussed key industry issues, including the transition to electric vehicles and ways to recycle automotive materials such as batteries, metals, and plastics. They also shared updates on changes in production and supply chains and on technology needs.

Kim Yeonjae, head of KOTRA's Europe Regional Headquarters, said, “The electrification of Europe's auto industry and the restructuring of its supply chains are creating opportunities for Korean parts companies to enter European supply chains.” Kim added, “We will do our utmost to provide follow-up support and expand cooperation so that these consultations, based on local purchasing demand, lead to supply chain partnerships not only with Skoda of the Volkswagen Group but also with the wider European auto industry.”

Exterior view of KOTRA headquarters. KOTRA

This content was produced with the assistance of AI translation services.