Germany is one of the defining foreign investors in the Czech economy. The relationship is visible in factories, supermarkets, engineering centres, energy infrastructure and supply chains, but its significance goes beyond individual brands. Czech production is deeply integrated with German industrial demand, particularly in automotive and mechanical engineering.

CzechInvest's Germany office highlights Volkswagen, Bosch, Siemens and Continental among the international groups established in the country. Germany Trade & Invest has separately identified Škoda Auto, Continental and Bosch among the largest German-owned industrial employers in Czechia. This guide combines those large employers with other German groups whose Czech operations are commercially important. It is not a strict ranking by revenue or headcount.

Volkswagen and the automotive supply chain

Škoda Auto is the most prominent example. The carmaker is headquartered in Mladá Boleslav and belongs to Volkswagen Group. Its scale makes it central to Czech manufacturing, exports and supplier demand. German ownership did not turn Škoda into a branch operation. It remains one of Czechia's most important companies and a major engineering employer in its own right.

Continental is another large industrial employer, producing tyres and automotive components at multiple Czech locations. Germany Trade & Invest reported roughly 10,600 employees across eight locations in its January 2024 investor overview. Bosch was listed at about 8,000 employees across eight locations. Schaeffler, ZF and Brose add further depth to the German-owned automotive supply chain.

Siemens connects manufacturing with research and services

Siemens has operated in the Czech lands for more than a century. CzechInvest describes it as one of the largest technology companies and employers in the country, with nearly 11,000 jobs nationally across manufacturing, development and services. Its Czech footprint includes factories, development centres and shared-services activity in Prague and Ostrava.

That mix is important. German investment in Czechia is sometimes described only through factories, but Siemens illustrates the shift toward engineering, software, automation and higher-value business services. CzechInvest notes that the group has multiple development and competence centres with global responsibilities.

Retail is another major German investment story

The Schwarz Group owns Lidl and Kaufland, both of which have substantial Czech retail networks. REWE Group operates BILLA and PENNY in the Czech market, while Metro has long served business customers through wholesale operations. These companies employ large numbers of people and have significant purchasing relationships with Czech food producers, logistics companies and property owners.

Retail investment is less visible in export statistics than automotive production, but it has a direct effect on consumer markets, commercial real estate, logistics and supplier standards. Germany Trade & Invest has noted the strong position of German retail groups in Czech fast-moving consumer goods.

Energy and industrial technology broaden the relationship

RWE has been active in Czech energy for decades, particularly in gas and energy services, although the ownership and structure of energy assets has changed over time. E.ON has also built a major Czech customer and infrastructure presence. Linde, now part of the globally organised Linde group, has long-standing industrial gas operations serving manufacturing and healthcare customers.

Other German groups including BASF, Bayer, Würth and Heidelberg Materials have Czech operations tied to chemicals, construction materials, industrial supply and agriculture. The result is a German business presence that reaches far beyond one sector.

Why German companies keep investing in Czechia

Geography is the obvious answer, but not the only one. Czech factories can supply German customers quickly, the countries share dense road and rail connections, and Czech engineering skills are well established. For manufacturers, Czechia also offers an existing supplier network rather than requiring a new investor to build every relationship from scratch.

The more interesting change is the growing role of research, software and shared services. As wages rise, Czechia competes less as a low-cost production location and more as an integrated Central European engineering base. German companies that already know the market are often among the best placed to make that transition.

Selected German groups with significant Czech operations
Company or groupCzech activity
Volkswagen / Škoda AutoAutomotive manufacturing and R&D
ContinentalAutomotive components and tyres
BoschAutomotive and industrial technology
SiemensIndustrial technology, manufacturing and services
SchaefflerAutomotive and industrial components
ZFAutomotive technology
BroseAutomotive components
LidlRetail
KauflandRetail
REWE / BILLARetail
REWE / PENNYRetail
MetroWholesale
E.ONEnergy
RWEEnergy
BASFChemicals