Robots now outnumber human workers at Porsche Smart Battery Shop in Horna Streda, western Slovakia, where automated shuttles and robotic arms assemble battery modules destined for electric versions of Porsche’s Cayenne SUV. The highly automated plant, opened in 2024 and backed by a reported EUR 1-billion investment, illustrates why Slovakia remains one of Europe’s most important automotive hubs – at least for now.
The country continues to draw carmakers despite wider struggles across Europe’s automotive sector. While vehicle production on the continent has fallen by more than a fifth since 2019, Slovakia has seen only a slight decline. Investment linked to the transition towards electric vehicles has helped cushion the impact.
The automotive industry dominates Slovakia’s economy. In 2025, the country produced nearly 1.1 million vehicles, the highest output per capita worldwide. The sector accounts for roughly 10% of GDP, employs around 170,000 people directly, and generates about one-third of Slovak exports.
Foreign manufacturers have been central to this success since the 1990s, when western European companies shifted production eastwards to reduce costs while remaining close to major markets. Volkswagen, which began operations in Slovakia in 1991, is now the country’s largest private employer, producing hundreds of thousands of vehicles annually across several brands.
New investment is continuing. Swedish carmaker Volvo is building a EUR 1.2-billion electric-vehicle plant near Kosice, scheduled to open in 2027. Company representatives have praised Slovakia’s skilled workforce, infrastructure and established supplier network, though government incentives – including subsidies worth about EUR 270 million – also played a role. Volvo is majority-owned by Chinese manufacturer Geely.
Yet Slovakia’s heavy dependence on car production carries risks, analysts warn. Carmakers face intensifying competition from cheaper electric vehicles made in China, while other countries are aggressively courting investors. Hungary has attracted both Chinese EV giant BYD and German manufacturer BMW, while Spain and Morocco are positioning themselves as alternative production bases.
For now, Slovakia remains firmly embedded in Europe’s automotive supply chain. But as global manufacturers increasingly invest where returns are highest, maintaining that position may prove more challenging in the years ahead. (The Slovak Spectator)