AGP Executive Report

Defence Industry & Tech Transfer: Cambridge Aerospace will showcase its Skyhammer low-cost interceptor at Prague’s Future Forces (Oct 21–23), targeting Shahed-type drones and other large unmanned aerial systems up to 30 km, as European militaries push layered air defence. Automotive Manufacturing: Škoda has started series production of the all-electric seven-seater Peaq at its Mladá Boleslav plant, using a flexible line shared with Elroq/Enyaq and the Octavia; the carmaker reports nearly 8,500 orders by end-July and a 91 kWh battery option promising 640+ km range. Energy & Nuclear Commissioning: Slovakia’s Mochovce 4 reached criticality and minimum controlled power, moving into commissioning tests before power is gradually increased. Industrial Digitalisation: Mitsubishi Electric Automotive Czech (Slaný) highlights how connected factory data is driving faster decisions, quality improvements and efficiency without replacing existing equipment. AI Infrastructure: Czech firm České Radiokomunikace is developing a potential Czech AI “gigafactory” concept around its Prague Gateway data centre, aiming to train and run AI models on modern GPU-based compute. Live Entertainment Investment: Live Nation will take a 51% stake in a new Prague joint venture covering O2 Arena, O2 Universum and Forum Karlín, with PPF retaining 49%. Defence Industrial Cooperation (India–Czech): VTDS signed a strategic technology partnership with Czech DEUS Automation to expand small-calibre ammunition manufacturing in India.

Skoda Electric Push: Skoda has started series production of its Peaq electric flagship at the Mladá Boleslav plant, with nearly 8,500 orders logged by end-July and a flexible line shared with other models to balance demand between battery-electric and combustion output. Urban Transport Upgrade: Škoda Transportation’s ForCity Plus tram family is expanding with low-floor, five-section low-floor designs for Bratislava, including the bi-directional 30 T and uni-directional 29 T variants. Czech Mobility Market: New car registrations in Czechia rose to 149,957 in the first seven months of 2026, with electric cars up 27% year-on-year to 10,168 units, while petrol/diesel shares keep slipping. Defence Tech Transfer: Vijayan Trishul Defence Solutions (India) signed a strategic technology partnership with Czech firm DEUS Automation to advance small-calibre ammunition manufacturing in India. Energy & Industry Pressure: Reports highlight how drought and river low levels are disrupting European logistics and power operations, with knock-on risks for energy supply planning. Archaeology on the Rails: Bronze Age ritual deposits were recovered during construction supervision along the Brno–Přerov railway line near Kojetín.

Skoda Electric Push: Skoda has started production of its Peaq electric SUV at the Mladá Boleslav plant, signaling a faster ramp-up of EV output in Czech manufacturing. Public Transport Modernisation: Brno’s last Tatra K2 articulated tramcar was retired on 19 April 2026, closing a long chapter for ČKD Tatra’s classic urban rail design. Czech Mobility Market: New car registrations in Czechia rose 4.53% year-on-year in Jan–Jul 2026, while battery-electric registrations jumped 27.42%, with Skoda still dominating the market. Industrial Partnerships in Defence Supply Chains: VTDS (India) signed a strategic technology partnership with Czech firm DEUS Automation to transfer small-calibre ammunition manufacturing know-how, underlining Czech industrial reach into defence production. Energy & Logistics Pressure in Europe: Drought-linked low river levels are disrupting Rhine shipping, raising costs and output risks for heavy industry tied to inland transport. EU Economic Context: Eurostat data shows Poland has become the EU’s sixth-largest economy, ahead of Belgium and others—an important backdrop for regional trade and investment decisions affecting Czech industry.

Czech Auto Market: New passenger car registrations in Czechia rose to 149,957 in the first seven months of 2026 (+4.53% y/y), with electric cars accelerating to 10,168 (+27.42% y/y) as petrol/diesel shares keep slipping. Skoda Production Push: Skoda has started production of the Peaq electric SUV at its Mladá Boleslav plant, with the model already drawing thousands of orders and reflecting a broader shift toward EV output. Public Transport Tech in Ostrava: Ostrava ordered 70 Solaris electric buses, replacing route chargers with large 600 kWh batteries—another step in Czech cities electrifying fleets. Industrial Defence Tech Transfer: VTDS signed a strategic technology partnership with Czech firm DEUS Automation to advance small-calibre ammunition manufacturing in India, highlighting Czech industrial know-how moving into defence supply chains. Energy & Water Stress in Europe: Drought and low river levels are worsening across Europe, with hydropower and shipping affected; the knock-on risk for gas and electricity supply is now a key autumn concern. Tourism Demand in Prague: Prague welcomed 3.83 million tourists in H1 2026 (+~1%), with higher spending and growing interest in culture and services beyond the historic centre. Security Testing Meets AI: A warning for industry: AI can boost coding throughput, but security testing practices still lag, leaving firms exposed when release cycles speed up.

Electric Mobility in Czech Cities: Škoda has started production of its Peaq electric SUV at the Mladá Boleslav plant, as EVs make up nearly 23% of Škoda’s Czech output in H1 2026. Public Transport Electrification: Ostrava has ordered 70 Solaris electric buses, with 600 kWh batteries replacing route chargers, deliveries set for 2027–2028. Industrial Policy & Trade Links: Kansas and the Czech Republic signed a Statement of Mutual Cooperation covering aerospace, agriculture/biotech, advanced manufacturing and nanotechnologies. Energy & Climate Pressure: Europe’s drought is worsening, with very low river levels affecting shipping and hydropower. Tourism Demand in Prague: Prague recorded 3.83m tourists in the first half of 2026 (+~1%), with higher spending and growing interest in culture. Tech for Industry Research: The EU EXA4MIND project, coordinated by the Czech National Supercomputing Center IT4Innovations, is delivering AI-enabled tools for mining data spaces.

Public Transport & Tourism: Prague’s historic centre is getting hit by construction tied to tram upgrades, with Národní-to-Charles Bridge routes shuttered for weeks and businesses reporting sharp drops in foot traffic as 1.7 million visitors arrive this year. Electric Mobility: Solaris won a major order for Ostrava—up to 70 electric buses (2027–2028) with a shift away from earlier pantograph fast-charging needs, enabling a much larger fleet. Industrial Decarbonisation: Saint-Gobain and AGC will deploy a large-scale hybrid electrified furnace for flat glass in Spain under the FurHy project, building on a Czech pilot and targeting major CO₂ cuts. Energy Security & LNG Routes: Romania and Moldova’s Transgaz move toward talks on Argent LNG, aiming to feed a “Vertical Gas Corridor” that could reach the Czech Republic and Central Europe with non-Russian supply. Geothermal R&D in Czechia: The UPLIFT project will run field demonstrations at Litoměřice/Litomerice (RINGEN site) to make enhanced geothermal safer and more acceptable, including work on reducing injection-induced seismic risk. Defence Industry Cooperation: India’s VTDS signed a strategic tech partnership with Czech DEUS Automation to advance small-calibre ammunition manufacturing and proof-testing in India. Fintech & Payments: Finovate Global highlights digital banking modernization in the Caribbean, including Belize Bank’s multi-year AI-native banking OS rollout with Backbase. Uranium & Nuclear Supply Chain: Cameco’s earnings call points to long-term uranium contract visibility and major US nuclear support tied to AP1000 long-lead items.

AI & HPC for mining: The Czech-led EXA4MIND project is rolling out tools and ready workflows to help researchers and SMEs handle extreme datasets using AI on European high-performance computing resources. Prague construction disruption: Upgrades to the city’s central tram line are turning parts of Prague into a construction corridor, hurting footfall for nearby businesses and frustrating tourists during peak summer. Defence industry tie-up: India’s VTDS signed a strategic technology partnership with Czech firm DEUS Automation to advance indigenous small-calibre ammunition manufacturing. Energy infrastructure links: Transgaz and Argent LNG agreed an MoU to explore Transgaz taking an equity stake, aiming to route US LNG via Romania toward Central Europe including the Czech Republic. Czech manufacturing automation: PORR tested a bricklaying robot (“Walter”) at a Kladno site, targeting precise, faster wall construction with millimetre-level placement. Healthcare supply: Czech pharmacies received new tamoxifen packs after months of shortage, with further shipments planned. Business & venues in Prague: Live Nation and PPF will run three major Prague venues (O2 Arena, O2 Universum, Forum Karlín) in a new joint venture. Skoda production update: Škoda Auto has started production of the new Peaq in Mladá Boleslav.

Czech-Linked Industry & Trade: Kansas and the Czech Republic signed a Statement of Mutual Cooperation covering aerospace, agriculture/animal health/biotech, advanced manufacturing and nanotechnologies, aiming to boost ties between firms, scientists and universities. Automotive Manufacturing: Škoda Auto has started series production of its new electric Peaq SUV at the Mladá Boleslav plant, using a flexible line shared with other models including Elroq and Enyaq; orders reportedly topped 8,500 by end-July. Energy & Climate Pressure: Extreme heat and drought are stressing Central Europe’s power and cooling systems, with record temperatures in Slovakia and Austria and disruptions tied to low river levels affecting coal-fired generation. Food & Agriculture: Expana cut its EU maize harvest forecast for 2026/27 after hot, dry weather hit France and other regions, also lowering soft wheat expectations, including in the Czech Republic. Telecom/Connectivity: AST SpaceMobile says it is running satellite-to-mobile integration testing with major operators across the Czech Republic and several other European countries, using standard smartphones. Industrial Security/IT: A Czech-relevant security angle: Protective DNS services are being pushed as a high-impact control, with major providers highlighting enterprise-scale deployment.

Czech Energy & Grid Storage: CATL-backed CNTE has commissioned the Czech Republic’s largest BESS project, Modlany (37.95 MW / 41.7 MWh), using liquid-cooled containers and providing fast frequency regulation while pairing with 42.7 MW of solar. Czech Manufacturing & Macros: Czech industrial output grew 4% year-on-year in June (fastest in six months), while inflation hit 1.7% in July and the trade surplus shrank—signals of steady industry but still-cautious demand. Automotive Production: Škoda Auto started series production of the new electric Peaq SUV in Mladá Boleslav, built on a flexible line alongside Elroq/Enyaq and Octavia, with orders nearing 8,500 by end-July. Construction Robotics: Austrian contractor Porr is deploying its bricklaying robot “Walter” on a Kladno housing project, aiming for millimetre-precise, high-throughput wall building with human supervision. Healthcare Supply Chain: A tamoxifen shortage in Czechia has become acute, with only 81 packs reportedly left nationwide and emergency measures underway as imports are disrupted. Business & Trade Links: Kansas and the Czech Republic signed a mutual cooperation statement covering aerospace, advanced manufacturing, nanotechnologies, and agri/biotech—aimed at new research and business ties. Aviation Connectivity: Korea–Czech passenger rights on the Incheon–Prague route rise to 10 flights per week, supporting more competition and lower fares. Logistics & Ports: Baltic Hub secured a 30-year lease at Gdańsk for a second rail and container facility, including a siding for trains up to 750 metres to shift more cargo from road to rail.

Logistics & IPO Watch: Global Dot Logistics’ Czech-linked Sambular more than doubled H1 net profit to $189k (CZK 3.94m) as GDL reported $14.53m H1 gross branch revenue, with Truck Line revenue rising on a shift toward higher-margin owned capacity and an IPO auditor selected in July. Wildfire Prevention Shift: EU wildfire policy is moving from “buying more response” toward prevention and risk reduction after record-scale burns across Europe, with experts arguing suppression alone can’t beat simultaneous large fires under extreme weather. EU Funding Pressure: EU governments are debating how to finance the 2028–2034 budget via new “own resources,” but fresh taxes face political resistance, while civil society funding disputes (including NGO operating grants) show the fight over priorities is getting sharper. Czech Tech in Identity & Connectivity: iDenfy added Czech Bank iD to its verification platform for document-free onboarding, while Deutsche Telekom tested flying base stations with seamless handover and satellite backhaul in the Czech Republic. Aviation & Defence Links: Korea-Czech passenger rights rise to 10 weekly flights, and Czechia’s defence ecosystem gets a boost as VOP CZ starts CV90 production for the army; meanwhile, Embraer KC-390 deals in Colombia highlight continued demand for Western airlift modernization. Energy & Industry Resilience: Ukraine’s energy ministry reports thousands of power equipment units delivered this year with Czech among donors, and the Baltics’ biomethane push accelerates as Bioforce secures a major Three Seas Investment Fund backing to scale output toward 2032 targets.

Ukraine-Carpathian Initiative: President Zelenskyy says a new Carpathian Initiative will launch this autumn, linking eight countries (including Czechia and Slovakia) around humanitarian aid, security, logistics and possible reconstruction cooperation. Czech Rail Demand: České dráhy reported 85.5 million passengers in H1 2026, the highest since 2019, with growth strongest in regional and suburban services. Energy Storage in Czechia: CNTE-backed Modlany Energy Park near Teplice is now detailed as a 42.7MW solar plant paired with 37.95MW/41.7MWh battery storage for frequency regulation and short solar shifting. Industrial Production in Ostrava: Sungwoo Hitech is nearing completion of a 32,600 m² automotive facility at P3 Ostrava Central, with robotic welding in the first phase and hot stamping/pressing planned next. Identity & Fraud Tech: iDenfy added Czech Bank iD to its verification platform, enabling bank-login-based onboarding without document capture. EU Macro Watch: Czech inflation rose to 1.7% y/y in July, while retail sales growth cooled. EU Sanctions Tech Controls: The EU expanded Russia-related export controls to include firms in China and elsewhere, prompting fast Chinese retaliation that also targets Tatra Trucks. EU AI Compute Push: EUPEX highlights Europe’s push to build and integrate next-gen HPC technologies locally.

Medicine Access vs Pricing Sovereignty: Spain pushes an EU “early procurement” idea to speed innovative medicines after EMA approval, but Czech officials and industry insist any mechanism must respect national control over medicine pricing and reimbursement. Automotive Fleet Pressure: Czech passenger cars keep aging—average age hit about 16.7 years in H1 2026, driven by rising imports of older used vehicles. Energy Storage Buildout: A new Czech BESS project at Modlany (CZK 1.2bn) is commissioned to support grid balancing and frequency regulation, with EU grant schemes continuing to kick-start storage capacity. Czech-China Political Signals: China’s NPC speaker Zhao Leji met Czech Chamber of Deputies head Tomio Okamura, highlighting cooperation potential in new energy and electric vehicles. Logistics Expansion: Nova Post says it opened 266 new service locations since start-2026, including 14 in the Czech Republic, as it scales its Europe network. EU Heat & Power Risks: Europe’s extreme heat and Danube low water levels are disrupting nuclear cooling operations, underscoring climate-driven stress on energy systems.

Energy & Climate Risk: Europe’s drought is hitting power and transport hard, with record-low Danube levels forcing emergency steps at Hungary’s Paks and already shutting Romanian reactors, while hydropower output across the region nears all-time lows. Grid Storage Expansion: Czech Republic’s Modlany BESS project is commissioned to support frequency regulation and grid balancing, with EU grants helping kick-start the storage market. Czech Nuclear Resilience Debate: Commentary argues drought is unlikely to shut Czech nuclear plants, pointing to different cooling setups versus the Danube-dependent case. Logistics & Ports: Port of Gdańsk signs a 30-year lease for a Baltic Hub expansion to boost intermodal rail and container handling, aiming to shift more cargo from road to rail. Defense & Industry: Czechoslovak Group buys a German site to produce nitroglycerin and ammunition components, investing over €100m in the first phase. Czech Business/Finance: Finance Minister seeks a criminal probe into a Czech payment account linked to Curaçao’s online gaming crypto flows. Energy Storage Policy: EU approves a Slovenia scheme supporting 370MWh of battery storage, underlining the regional push that Czech projects are also riding.

Czech Manufacturing Watch: S&P Global’s Czech manufacturing PMI slipped to 52.2 in July from 53.9 in June, still above the 50-point growth line but with slower new orders, supply-chain delays, and cost pressures pushing firms to curb input buying, limit stock growth, and reduce headcount. Defense Industry: VOP CZ has started full assembly of the CV90 tracked infantry fighting vehicles in Šenov after the first hulls arrived from Sweden, with two new production lines built and plans for over 200 vehicles, followed by extensive testing before delivery to the Czech Army. Energy Bills Pressure: A new analysis says many Czech households may be on the wrong electricity distribution tariff, with potential savings of more than CZK 1.3 billion per year if they switch to a better match for their consumption. EU Tech & Manufacturing: Apple’s acquisition of Czech materials science firm PlasmaSolve adds plasma simulation tools to model coating processes before factory testing, aiming to improve durability and manufacturing efficiency. EU Policy & Privacy: A CJEU ruling tied to a Czech case on filming public spaces with home CCTV could affect broader IoT and drone-related practices across the EU. Regional Cooperation: Ukraine’s planned Carpathian Initiative this autumn would link eight countries, including Czechia and Slovakia, focusing on logistics, economic development, security, and later culture and tourism.

Energy Costs & Tariffs: A Czech analysis by bezDodavatele says many households may be overpaying because they stay on the wrong distribution tariff; switching could cut bills by more than CZK 1.3bn a year, with 53% of checked households potentially benefiting. Manufacturing Pulse: S&P Global’s July PMI shows Czech factory growth easing (52.2 vs 53.9 in June), with slower new orders and cost pressure, though foreign demand is still rising fastest since 2021. Corporate Cash Returns: ČEZ starts paying CZK 22.6bn in dividends (CZK 42 per share), with the state set to receive nearly CZK 16bn. EU Privacy Rules for Smart Devices: The EU Court of Justice ruling in a Czech CCTV case could reshape how home cameras and other IoT devices handle filming public spaces and personal data. Logistics & Rail Investment: CMA CGM confirms it is withdrawing from a bid for a 49% stake in France’s Rail Logistics Europe, citing misalignment with its investment priorities. AI Infrastructure Push: The EU launches a call for up to seven AI gigafactories, backed by up to €10bn public funding and aiming to unlock at least €20bn private investment. Climate Pressure: New reporting says Europe is warming at about twice the global rate, with heatwaves arriving earlier and water stress already hitting a large share of Europeans. Health & Research: Czech and US scientists report lab methods to reproduce key chemistry from poisonous wolfsbane and larkspur, pointing to more sustainable routes for future medicines and pest control. Aviation Link to Prague: Starlux launches its first European route with Taipei–Prague flights, starting with three weekly services and moving to four from October.

AI Gigafactories Call: The EU has opened tenders for up to seven AI Gigafactories, backed by as much as €10bn in EU and national funding and aiming to unlock at least €20bn in private investment, to expand Europe’s AI computing capacity for training, inference and fine-tuning under EU data, safety and ethics rules. Prague Housing Boom: New-build apartment sales in Prague climbed again in Q2 2026, with about 1,950 units sold (+11% y/y) and prices hitting record levels near 188,000 CZK/m² asking and 182,000 CZK/m² average selling. Hungary Grid Stress: After low Danube water forced the Paks nuclear plant to shut for the first time in 44 years, Hungary urged households to cut evening electricity use and boosted imports—mainly from Czechia—raising night imports to around 4 GW. Czech Entrepreneurship Up: The number of self-employed people in Czechia rose sharply in H1 2026, with 51,534 starting business activity and a net gain of 24,234, led by Prague and construction. Czech-China Policy Debate: A reset in Czech China policy under a Babiš 2.0 scenario looks unlikely in full, though a more tactical easing of tensions is possible as China’s value proposition and security costs become clearer. Aviation Rights Watch: A Lufthansa A350 pressurization fault on an EU route triggered potential passenger compensation claims up to €600 under EU rules, with the flight returning to Munich and being cancelled.