Czech Republic car factory output almost reached 1m, a local lobby group said.

Production rose 7.3% year-on-year in the first three quarters of 2016 to 997,376 cars from Skoda Auto, Hyundai and the Toyota-PSA joint venture TPCA, the Automotive Industry Association (SAP) told Reuters.

Cars and parts are crucial to the highly industrialised and export-dependent central European economy seen as low-cost but now facing labour recruitment issues after many workers took advantage of EU free labour movement rules and headed west.

Overall, the production of motor vehicles – including cars, buses, trucks and motorcycles – passed 1m at the end of September, Reuters reported.

"The record production is supported by the growing domestic demand and predominantly the growing buying interest in western Europe markets," SAP president Martin Jahn said in a release cited by Reuters.

Local brand Skoda Auto, owned by VW, maintained top position with a 56.7% share, followed by Hyundai Motor (25.6%) and TPCA (17.7%). 

Hyundai affiliate Kia has a factory in neighbouring Slovakia.