2022 was the fourth consecutive year where production volume has fallen. Before that, it was increase upon increase. So what has happened? Škoda has remained profitable - although down slightly. Is it a case of consolidating what it has achieved and looking more at keeping up with change? Some next generation models are arriving in late 2023 and a new, smaller electric car is on the way.
SUVs while increasing still only account for 38% of the total and they generally have better margins than cars. The Scala/Rapid and Octavia lead the way. Electric models are needed in a continent where that is the future. The foundation is solid, so keeping up with change is the task at hand.
Data source: VW Group.
Regional sales: Škoda relies too much on one region. Asia is showing promise but sales in China slumped while India boomed so the latter is now the larger market for the company. A case of one step forward, one step back. North America doesn't figure for the company.
As Skoda is part of a larger conglomerate, it is not relevant if it relies on European sales, as its models often ended up in Asia as Volkwagen models, and vice versa. The first gen Superb was a nearly identical match of the Chinese market long wheel base Passat.
ReplyDeleteNevertheless, I believe Skoda plays the right cards on the EU market.