A minibus shuttle service was tested in Helsinki in 2018 and 2019 and the EU funded project has expanded to multiple other projects including the same shuttle service piloted in the Baltics. VTT Technical Research Center has conducted testing and research with autonomous cars since 2015. The latest tests have tested self-driving cars in the harsh conditions of Finland where lanes and roads are not clearly visible due to snow, fog, slush or other extreme conditions.
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Finland
Vehicle Technology
The Finnish government has committed to reduce emissions by 60 percent by 2030 compared to 1990. As the vehicle base in Finland is old due to high vehicle taxes, conversion kits and other vehicle technologies to reduce emissions and modernize old vehicles have a market. The Finnish government has also increased financial support for electric vehicles by tripling the funding in 2020 compared to 2019 for constructing electric car charging stations. The government has also investigated other options to promote the expansion of the number of electric car charging stations available, which provides opportunities for suppliers and companies specializing in electric vehicle systems.
Finland has traditionally had strong network coverage, which provides opportunities to take part in the development of the infrastructure for autonomous vehicles. The combination of extreme conditions, strong infrastructure and the legal framework provide a good platform to launch products and potentially dominate the markets.
Summary
Smart Mobility brings new opportunities almost everywhere. Many new programs and technologies need to be combined to achieve the complexity and functionality needed for the systems. A functional traffic infrastructure is the most important part. Intelligent Traffic Systems are to enhance functionality of such a traffic infrastructure, and a key market opportunity. Autonomous cars are expected to be a final answer to smart mobility requirements, but deployment is many years away, while autonomous public transport solutions could be deployed sooner. All these technologies and structures cannot work in isolation and all require significant investments. Therefore, besides a way how to achieve a sustainability, Smart Mobility is also a long-term business opportunity for all developed countries. The EU and the Czech Republic as a member state are no exceptions.
Automotive Industry in the Czech Republic
There are the three major car manufacturers in the Czech Republic - Volkswagen / Skoda Auto, Toyota Motor Corporation and Hyundai. In addition, there are also manufacturing facilities for more than half of the world’s 50 leading suppliers located in the country.
In 2019, the Czech automotive market created 10 percent of the national GDP and contributed 24 percent to Czech total exports. The Czech Automotive Industry Association announced an annual production of 1,427 million new passenger cars in the Czech Republic, which represented roughly CZK 1,100 billion ($54 billion). Production of exported automotive parts and accessories was responsible for about 60 percent of total output. The remaining 40 percent represented production of new vehicles for export. Final data for 2020 is not yet available, but the automotive market has been hit by the pandemic and the numbers are anticipated to be significantly lower.
Market Entry
The Czech market fully complies with EU market entry regulations. Manufacturers must comply with numerous European Commission Directives, a scope of which is beyond a size of this report. A comprehensive market entry strategy is described in the Country Commercial Guide Czech Republic at www.export.gov/ccg/. Parts of that report have been included in the following paragraphs but not the entire report.
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Czech REpubliC
Finland is a high-technology Nordic country of 6 million people located in Northern Europe. Per the Digital Economy and Society Index (DESI) of the European Commission measuring digital competitiveness, Finland ranked number one in EU in 2019 improving two spots from 2018 making Finland the EU digital leader. The Information and Communication Technology (ICT) sector in Finland employed 4.6 percent of the workforce in 2018 with a large share working in the software industry. Turnover for the ICT sector in Finland was $34 billion in 2018, staying on the same level as 2017. The value of electronics imports from the United States in 2018 grew by 20 percent from 2017 with the largest categories of computer hardware and units totaling $28 million (decrease of 38 percent), telephones and network devices totaling $43 million (decrease of 57 percent), and electronic components totaling $106 million (increase of 291 percent). The GDP estimate for Finland for 2018 is $261 billion with a GDP per capita of around $44,000.
Summary
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Private ownership is normal in Finland. All businesses in Finland must be publicly registered at the Finnish Trade Register. The type of company also affects the permits required, which can include the registration of the right to residency, residence permits for an employee or self-employed person, and registration in the Finnish Population Information System.
A foreigner may need a permit from the Finnish Patent and Registration Office to serve as a partner in a partnership or an administrative body of a company. The practice of some trades in Finland require only a notification or registration with the authorities while others require a separate license. Entrepreneurs must take out pension insurance for their employees, and certain fields obligate additional insurance. All businesses have a statutory obligation to maintain financial accounts, and, with the exception of small companies, businesses must appoint an external auditor. Finland waived the stock capital requirement for corporations in 2019 making incorporation readily accessible. Best strategy for market entry depends on the type of operations. For services, a local presence or a representative is a must as while English skills are relatively good amongst Finns, most customers prefer localization to and service in Finnish. For traditional products and parts, partnering with local suppliers or dealers to gain entry to the supply chains is an option as long as partner selection is conducted with due diligence.
Market Entry