Skoda Auto, based out of Mlada Boleslav, Czech Republic, is on its way to register one of its most successful years in its 122 years’ history. The Czech car maker has never ever achieved such strong sales revenue, deliveries and operating profit than it did between the months of January and March.
The European brand known for its sleek, value luxury products delivered more than 283500 vehicles worldwide. The revenue from sales touched 4.3 billion Euros in the same period showing an increase of 28.3% while the operating profit increased by 31.7% to 415 million Euros. The first quarter of 2016 saw Skoda Auto achieve 3.379 billion Euros as sales revenue and an operating profit of 315 million Euros.
“ŠKODA was doing well during the first three months of the year and is on a stable growth path. However, the 2017 automotive year remains challenging; the volatile developments in some markets and the harsh competitive environment require careful attention,” says ŠKODA CEO Bernhard Maier, adding: “With our Strategy 2025, we are preparing the company for the social and technological changes facing the automotive industry. The recently presented electric study VISION E provides an outlook on how ŠKODA is actively shaping the individual mobility of tomorrow.”
“Despite a challenging market environment and high volatility in exchange rates, ŠKODA achieved desirable results in the first quarter. The higher profitability is mainly attributable to positive volume, mix and exchange-rate effects,” says ŠKODA CFO Klaus-Dieter Schürmann. “We continue to operate from a position of financial strength. In light of the sometimes unpredictable developments in some regions of the world, it is more important than ever to work very cost-effectively.”
Globally, the best performing models for Skoda in the first quarter include the brand’s flagship Skoda Superb, the compact car Skoda Fabia and the mid size sedan Skoda Rapid , which achieved above average growth rates.
With the Strategy 2025 clearly in its eye sight, Skoda plans to focus on
• Expanding its SUV model range
• Electrification of Skoda model range
• Further internationalization
• Developing new integrated digital mobility solutions
While Skoda as a brand has been performing exceptionally well globally, its Indian arm Skoda India is still trying to get a grasp of the Indian market even after being present in the market for more than a decade. The brand has been hampered by poor public perception in terms of cost of ownership, spares availability and serviceability. The recent couple of years has seen quite a positive change in Skoda’s efforts to break the people’s perceptions and is trying to be seen as a value luxury brand with improved service experience and customer focus as its top priority.
The new Skoda Superb was launched last year and Skoda India is gearing up for its new launches in Skoda Octavia facelift, Skoda Octavia vRS in a couple of months and the all new Skoda Kodiaq by the festive season in October.