Thu, 22 Jan 2026

Thu, 22 Jan 2026 How tiny Slovakia became a car making heavyweight

The European country is the biggest autos manufacturer relative to the size of its population.
The average monthly salary at Kia's facility is €2,400, which is higher than Slovakia's overall average but lower than the EU-wide average of €3,417. Most workers are Slovak, with only a few dozen senior Korean managers living in a gated community near the factory. A car industry expert attributes the country's success to its low wages (60% of Western wages) and high productivity. Kia Europe's CEO Marc Hedrich notes that Slovakia's central location benefits the car manufacturing industry, as well as its ability to produce electric cars eligible for larger government discounts due to its high rate of low-carbon energy generation. The country also has a dense network of car industry suppliers with over 360 companies working in the sector. The Slovak government offers incentives to carmakers like Kia, including tax credits. The benefits for Slovakia include a significant decline in unemployment and an increase in economic strength in the Zilina region, where more than 20,000 people are directly employed by Kia and other related companies.
  >>