It Wasn't China... This Country Ranks First in Per Capita Car Production

Attracting Numerous Overseas Automaker Factories Including Kia Motors
Labor Costs Only 60% of Western Europe, Providing a Competitive Edge

While China is the world's largest automobile producer by total output, Slovakia, a Central European country, ranks first in the world in terms of per capita production. This is thanks to the attraction of numerous overseas corporate factories, including Kia Motors.

The British public broadcaster BBC recently reported that Slovakia has achieved the highest per capita automobile production in the world. According to the report, Slovakia produces about 1 million cars annually, while its population is only 5.4 million.

Kia Motors factory in Slovakia. BBC capture

Slovakia has already established itself as the "automotive hub" of Europe, a status achieved by attracting investments from global automakers. For example, in the northern city of Zilina, Slovakia, there is a Kia Motors factory. Over the past several years, Kia Motors has invested 2.5 billion euros (approximately 4.3 trillion won) in the factory site. In addition, the British luxury car manufacturer Jaguar Land Rover and the European automaker Stellantis also have factories in Slovakia. Volvo is also scheduled to begin operating an electric vehicle plant in Slovakia in 2027.

Marcel Fukon, who works at the Kia factory in Slovakia, told the BBC, "I've had a deep passion for cars since childhood, and now that I'm making cars, it's like my dream has come true." Another Kia production worker, Simona Knova, said, "Half of my family works here at the Kia factory. I wanted to try it as well," adding, "Compared to other companies in Slovakia, car factories offer higher wages."

According to Knova, the Kia factory pays production workers a monthly wage of 2,400 euros (about 4.12 million won). The average monthly wage for Slovakian workers is only about 1,400 euros (about 2.4 million won).

It is reported that Slovakia has had automobile factories since the days when it was part of the Soviet Union. After the collapse of the Soviet Union and the opening of capital markets, Germany's Volkswagen was the first to invest, and now numerous automakers have clustered in the country.

Slovakia's advantage lies in its relatively low labor costs. German automotive industry expert Peter Prokop told the BBC, "In the 1990s, labor costs in Slovakia were 20% of those in Germany, and even now, they are only 60% compared to Western Europe," adding, "However, productivity is relatively high. Therefore, Slovakia still maintains strong competitiveness."