In a vast factory set against snow-covered mountains in northern Slovakia, steel car bodies descend onto a moving assembly line, marking the start of a process that produces a finished vehicle every single minute. The scene unfolds at Korean carmaker Kia’s European manufacturing plant near the city of Zilina, where hundreds of robots and thousands of workers operate in carefully choreographed precision to turn metal shells into road-ready cars. The facility, which Kia says represents an investment of €2.5 billion, stands as a symbol of Slovakia’s remarkable rise as one of the world’s most car-dependent manufacturing nations.
Despite having a population of just 5.4 million, Slovakia produces close to one million vehicles annually, giving it the highest car production per capita globally. While this figure is modest compared to giants like China, which manufactures over 30 million cars a year, Slovakia’s output relative to its size has made it a critical hub for the European automotive industry. Alongside Kia, global brands such as Volkswagen, Stellantis, Jaguar Land Rover and, soon, Volvo have established or are building major production facilities in the country.
At the Kia plant alone, around 3,700 people are employed, most of them Slovak nationals. Workers describe a mix of pride and pragmatism in their roles. For some, like assembly line employee Marcel Pukhon, returning from years spent abroad to work in Slovakia’s car industry fulfilled a long-held passion for automobiles. Younger workers, such as 23-year-old Simona Krnova, see the job as a stable and relatively well-paid option rather than a calling, with wages that compare favourably to other local employers.
Kia says the average monthly salary at the Zilina plant is €2,400, significantly higher than Slovakia’s national average wage of €1,403 recorded in 2023. However, it remains well below the European Union average of €3,417, highlighting why the country continues to attract foreign manufacturers. Industry experts note that labour costs in Slovakia are still around 60% of those in Western Europe, while productivity levels remain high, making the country highly competitive.
Slovakia’s transformation into an automotive hub began after the fall of communism in 1989, when decades of state-controlled industry gave way to foreign investment. Volkswagen’s entry into the region in the early 1990s marked a turning point, followed by a steady influx of other global carmakers drawn by low wages, skilled workers and a strong industrial base. Today, the country boasts a dense network of more than 360 automotive suppliers, further strengthening its appeal.
Geography and energy policy have also played a role. Situated at the heart of Europe, Slovakia offers easy access to major markets such as Germany, Italy, Spain and the UK, the latter being the biggest destination for Kia cars produced at the Zilina plant. At the same time, the country’s reliance on low-carbon energy sources, including nuclear and hydroelectric power, means electric vehicles made in Slovakia qualify for higher consumer subsidies in some countries.
The Slovak government has actively supported the industry through incentives, arguing that the economic benefits far outweigh the costs. Local leaders credit Kia’s arrival with sharply reducing unemployment and boosting regional prosperity, with tens of thousands of jobs now linked directly or indirectly to the plant. Investment in education has followed, with technical schools and universities aligning their programmes to meet the needs of carmakers.
As other Central and Eastern European countries follow a similar path, Slovakia’s experience highlights how strategic location, competitive costs and sustained foreign investment have turned a once-struggling post-communist economy into a key pillar of Europe’s automotive industry.
