KOTRA holds one-on-one talks between 17 Korean auto parts firms and Skoda's procurement team in Czech Republic

The Korea Trade-Investment Promotion Agency (KOTRA) held a "Czech Future Mobility Forum and Global Partnering Day" in Prague on Friday, the agency announced Monday. Seventeen Korean auto parts companies held one-on-one consultations with about 30 members of Skoda's procurement team and local tier-1 and tier-2 suppliers to explore potential supply contracts and technology cooperation.

Skoda became a subsidiary of Germany's Volkswagen Group in 2000 and posted sales of 30.1 billion euros last year. The automaker has been pushing electrification by rolling out a series of new electric vehicle models. According to the European Automobile Manufacturers' Association, the Czech Republic produced about 1.44 million passenger cars last year, with a supply chain centered on Skoda, Hyundai Motor and Toyota. More than 20 Korean tier-1 and tier-2 suppliers have also established a production base in the country alongside Hyundai Motor.

According to a KOTRA report on Czech EV supply chain trends and market entry strategies, the Czech Republic produced 285,000 electric vehicles last year, up 89 percent from the previous year, accounting for about 20 percent of total passenger car output. KOTRA projected that demand for related components will grow as Skoda expands its EV lineup and scales up battery production and other electrification investment.

The consultations focused on 16 categories of items across six fields that Skoda's procurement division identified directly: exterior and lighting, doors and opening systems, interior, thermal management, metal and EV, and general procurement. Discussions covered product applicability, supply conditions and new supplier registration procedures for items where Korean companies have proven capabilities — including automotive lighting, glass, window regulators, flush door handles, air conditioning and thermal management systems, battery cases and covers, and molds and inspection equipment.

More than 10 Czech and European tier-1 and tier-2 suppliers also took part, broadening the scope of talks to cover both direct supply to automakers and entry through component suppliers. The Czech plant of Hutchinson — an auto parts company with annual sales of 5 billion euros — said it was looking for partners capable of precision machining of steel and aluminum tubes to custom specifications and able to handle small-volume orders.

A representative of a Korean company that participated said the event allowed them to introduce their production base in the Czech Republic, their experience supplying European automakers and their supply capabilities to Skoda's procurement officers. "We will use this consultation as an opportunity to expand our customer base in Europe and diversify our supply channels," the representative said.

At the future mobility cooperation forum held before the consultations, automakers from the two countries discussed key industry challenges — including the transition to electric vehicles and recycling of vehicle materials such as batteries, metals and plastics — and shared updates on production and supply chain changes as well as technology needs.

South Korean Ambassador to the Czech Republic Yang Dong-han said in a congratulatory address that EV parts companies and AI software firms must build a close cooperation network centered on leading automakers from both countries, including Skoda and Hyundai Motor. "I hope this forum will help Korean companies expand their participation in the European automotive supply chain and strengthen Skoda's competitiveness in future mobility," he said.

Kim Yeon-jae, head of KOTRA's Europe regional headquarters, said the electrification of the European auto industry and the restructuring of supply chains are creating new opportunities for Korean parts makers to enter the European market. "We will do our utmost to provide follow-up support and expand cooperation so that the connections made through these consultations — grounded in actual local procurement demand — can extend beyond Skoda of the Volkswagen Group to supply chain partnerships with the broader European automotive industry," Kim said.

Meanwhile, KOTRA is continuing its efforts to support Korean companies' entry into global markets across a range of sectors, including hosting an online briefing Wednesday on strategies for winning public contracts tied to the 2028 Los Angeles Olympics.