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Wholesale trade and sale and repair of motor vehicles

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NACE 2002 - 50 Sale, maintenance and repair of motor vehicles and motorcycles; retail sale of automotive fuel
NACE 2002 - 51 Wholesale trade and commission trade, except of motor vehicles and motorcycles

This industry’s proportion in total employment in the Czech economy is about the same as in some developed Western European countries. The number of employees in wholesale trade and services related to the repair and servicing of motor vehicles is relatively stable in the long term. The same applies to the proportion in total employment. In view of the fact that overall employment in the economy will decrease in the medium term, a similar decrease can be expected in wholesale trade. The approximately 6% proportion in total employment should therefore be preserved over the long term. 

Wholesale and retail trade and logistics will be influenced by very similar trends in years to come. An increasing level of internet penetration into the purchasing and consumer behaviour of Czechs enhances their understanding of the market, equalises conditions for competitors and forces manufacturers and sales people to innovate and to attract users not only by highlighting the products as such (their functionality), but also, and most importantly, by drawing their attention to the product design and accompanying services. Wholesale trade will play a key role in the changing market conditions in two aspects.

Firstly, there will be a growing trend where consumers will seek customised products and services. The role of wholesale is to shorten, as much as possible, the products ’ travelling distance  between the manufacture and the retail outlet, or, possibly, to facilitate a direct link between the manufacturer and the user. Advanced logistic services such as on-line tracking and management of deliveries and a maximum possible reduction of the lead time will require a further qualitative ICT impact on the industry. Secondly, there will have to be better arrangements for ensuring feedback from consumers to manufacturers, and improved quality of servicing and repairs as part of accompanying services. Overall, there will be increased requirements for skills related, in particular, to the use of ICT for optimisation. Internationalisation will constitute another major trend. Borders between markets will decrease in importance and requirements for unification of processes and language skills will be an increasingly important precondition for the workings and competitiveness of wholesale trading companies. 

Services related to the repair and maintenance of motor vehicles will be affected, to a large degree, by changes in rolling stock. The average car age in the CR is nearly 14 years, while in Western Europe it is 4 to 6 years less. It may be expected that the efforts to attach various allowances to new cars (emission limits, reduced price when a new car is purchased) will lead to an increased number of newer cars on Czech roads. Employment in this sector is likely to shift towards traders in new cars and approved car service and repair shops that normally provide servicing and repairs within the guarantee period for the first 3-5 years of the lifespan of the vehicle. An increasing share of electronic components in motor vehicles – particularly the new ones – will boost demand for servicing people who will be able to repair not only mechanical but also, and most importantly, electronic defects. The growing proportion of newer cars will also be a result of the growing demands on the part of Czech customers. This will be reflected in higher requirements for workers with marketing, sales and customer service skills, as consumers will expect enhanced accompanying services along with increased car-related costs.  

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