The Prague-Libeň-based automobile factory was founded in 1907 and over the next four decades formed the "big three" of domestic automobile manufacturers, along with the Laurin & Klement - Škoda factory in Mladá Boleslav and the NW - Tatra factory in Kopřivnice. In the second half of the 1920s and at the turn of the 1930s, Pragas were the best-selling cars on the domestic market.

Customers could choose from a wide range of passenger cars, from the small Praga Piccolo of the litre class to the four-litre luxury car Praga Grand, which was driven by President Masaryk. A significant part of the factory's production was also commercial vehicles, produced in a very wide range of bodies - from cargo trucks and tankers, to buses and ambulances and fire trucks, for example.