– Participation of major automakers and suppliers in Central and Eastern Europe, such as Kia, Skoda, Toyota, and Land Rover –
– Discussion on various issues such as semiconductor shortage, power source change, autonomous driving, and supply chain management –
From October 2021 to 12, 13, more than 9 participants from 290 countries participated in the Central and Eastern Europe Automotive Industry Conference (CASC 2021) held in Olomouc. The main theme of the conference CEE Automotive Supply Chain 2021, hosted by the Czech Automobile Industry Association, the Slovak Automobile Industry Association and other partners of the International Chamber of Institutions, was managing the crisis in the supply chain of automotive parts.
During two days at CEE Automotive Supply Chain 2021, various presentations were presented to participants in the automotive industry, including representatives of current OEMs, suppliers and subcontractors in the automotive sector. There was a discussion about how the supplier-customer relationship is changing and its impact on the semiconductor, raw material supply and demand situation, the global economy and the automotive industry.
The first day of the event featured a conference and networking dinner, and on the second day, a B2B meeting was combined to provide an opportunity to interview industry stakeholders looking for partners in the CEE region. During the two days, all participants had many opportunities to find new contacts and connect with leading automotive OEMs and Tier 1 and 2 companies, as well as listen to discussions and lectures from experts in this industry.
CASC 2021 Overview
The future of the automotive industry in Slovakia and the Czech Republic from an OEM's point of view
The main topics of lectures and discussions were the future and forecasts of the main representatives of OEM automobiles in the Czech Republic and Slovakia. Although the automotive industry is currently in great trouble due to the semiconductor crisis, all organizers agreed that the automotive industry will grow in recent years. According to the head of OEM parts development/department in OEM Slovakia, “The automotive industry will continue to grow for at least the next 10 years, but shared services will certainly be used more than now. “There will be more use of car sharing as well as bike sharing and e-scooters.” When asked why OEMs decided to use battery cells instead of fuel cells or other types of vehicle energy (eg hydrogen), they also answered:
“We had to choose a battery cell. Because it is the most advanced and engineered technology on the market today. This poses a problem for automakers as the EU pushes a lot of harsher measures with new regulations. In the city center, a battery powered car is good. But in the countryside, using hydrogen in conjunction with electric batteries is the best option.”
Speakers also discussed predictions about which OEMs will grow in the future. All OEMs dealing with electronics, castings, chassis and software will grow in the future. Also, regarding the European autonomous vehicle vision, it will be possible on highways within the next five years, and the biggest problem is avoiding pedestrians. It will be possible in the next few years on closed or unified roads, but it is still a long way from being realized as a global trend.
Changes in the supply chain from the perspective of primary suppliers
The semiconductor crisis is affecting real industrial development. There were some crises in 2015 (Japan) and 2017 (Mexico), but not as much as they are now. Currently, the primary task of the primary supplier is to continuously supply products to customers (finished vehicles). All of the speakers attending the discussion explained that all departments of their company have assembled teams to predict real and future risks. Risk assessment, i.e. supplier health forecasting and customer forecasting, is essential for a smooth business of a company. For example, a supplier may have decided to purchase a supplier to prevent a shortage when financial problems make it difficult to produce a key product for the production of automobiles.
Also, according to other vendors, the current situation is very unstable, and its risk management team knows that a crisis is coming, and the company is working with its suppliers every day to avoid making them a buffer for the crisis. The global problem is that now everyone is focusing on semiconductors, but no one is looking into the future and is not checking other products/parts in question. No one knows what will be gone in six months.
In addition, KOTRA participated in an exhibition booth at the Bratislava Trade Center to promote auto parts related companies such as Desicant and DS Starter. Many participants visited the booth to check the possibility of cooperation, and if demand is confirmed, it is planned to create business possibilities through video consultation and correspondence support.
implication
CEE AUTOMOTIVE 2021 is the 4th event this year, and it is a good event for Middle Eastern automakers and suppliers to gather to discuss current issues and discover collaboration demands. Experts predicted that the automobile industry will continue to grow along with technological innovation despite temporary crises such as a shortage of semiconductors. Although EV sales in Slovakia are still only 2020% of the total in 1.2, battery EVs, hydrogen fuel cell vehicles and autonomous driving functions will continue to be a hot topic in the automotive industry. Next year, this event is likely to be held tentatively in Zilina, Slovakia, and we need the attention of our automobile industry.
Source: Comprehensive data from the KOTRA Bratislava Trade Center