PRAGUE (Reuters). Despite a shortage of chip technology globally, Czech carmakers will be producing quarter million fewer cars this year than they expected. In addition to losing 200 billion crowns (9.14 billion in sales), the Auto Industry Association (AutoSAP), stated on Sunday.

AutoSAP reports that September saw a drop in domestic passenger vehicle production of 53.1%, or 56,157, year-on.

According to the report, the impact of chip shortages will be greater than that from pandemic shut downs in the last year. It urged the government to initiate an aid programme to pay for wage loss caused by the coronavirus pandemic.

AutoSAP reported that production increased 2.9% in January to September, to 831 653 cars.

AutoSAP reported that “production has already been substantially affected by output curbs since August” and that September’s statistic supports this negative trend.

Skoda, the largest Czech producer Volkswagen (DE) has stated that it will limit or close production of its Czech plants beginning next week. This could be possible until the end.

Czech industry is highly industrialized. 180,000 Czech workers work in the car sector, which accounts for 25% of Czech industrial output.

SAP estimated that carmakers would lose 120 billion crowns and parts suppliers 80 billion revenue. About 3.3% of this country’s nominal gross domestic products is expected to be lost due to the loss in revenue at 200 billion crowns.

Toyota and Hyundai are the other major carmakers with Czech Republic-based assembly plants.

($1 = 21.8710 Czech crowns)