PRAGUE, Jan 29 (Reuters) - Production at TPCA, the Czech car assembly plant jointly owned by Toyota Motor Corp and PSA Peugeot Citroen, fell by a fifth to 215,000 vehicles in 2012 due to weak European demand, a spokesman said on Tuesday.
"The situation on the European market is such that a stagnation or drop is expected this year," TPCA spokesman Radek Knava said.
TPCA had flagged a hit due to fall in production of its small-model cars in February last year. The plant makes the Toyota Aygo, Peugeot 107 and Citroen C1 models.
The car industry is a key engine of the export-reliant Czech economy, which has contracted since the middle of 2011 due to falling household consumption and slowing trade in the wake of the euro zone debt crisis.
Skoda Auto, a unit of Volkswagen, is the country's biggest car producer. Hyundai Motor also runs a plant in the central European country. (Reporting by Robert Mueller; Editing by Mark Potter)