Skoda’s global sales cross 1 million units in 2016

Czech car manufacturer Skoda has delivered 1 million vehicles in 2016, reaching the milestone approximately one month earlier than 2015, when it had achieved the feat in November.

This is the third year in a row, when the carmaker has sold over a million cars.

The strong demand for its flagship saloon Superb has provided a fillip to the carmaker’s sales in 2016. From January till now, over 115,000 units of the Superb have rolled off the production line – an increase of 85.2% compared to the previous year.

“The current financial year shows that Skoda can sustainably tap into new customer segments with a modern model range on the international markets,” says Skoda CEO Bernhard Maier, adding: “We will also continue our growth course in 2017. The new Skoda Kodiaq is going to play an important role in this; the model will expand our range in the growing SUV segment.”

The biggest volume driver for the carmaker in 2016 is the Octavia, which has made a significant contribution to the record sales. Skoda delivered 361,700 units of its bestseller from January to October. In the coming year, major revisions are planned for the Skoda Octavia as well and the model is set to further strengthen its successful position on the international markets.

The popular small car Skoda Fabia (discontinued in India) and the compact Skoda Rapid are also showing positive trends, deliveries of these two models increased by 6.7% and 7.0%, respectively during the fiscal.

Bullish on India

Even as its global sales are on an upswing, Skoda has found it difficult to tap the growing demand for feature-laden cars in India. Despite having most of its products available in India, the sketchy aftersales support has capped the growth in sales of otherwise solid products.

So far this year (January-October 2016), Skoda India has sold a total of 11,467 units. Among its line-up of cars available in India, the Rapid with sales of 7,876 units is the most popular model followed by the Octavia (2,112 units), the new Superb (1,428) and the Yeti (51 units). 

However, the carmaker has recently revamped its business model in India and has invested Rs 100 crore to reinvigorate its dealer network and aftersales service. Additionally, with new products planned for launch next year, the manufacturer is eyeing sales of over 20,000 units in 2017 in India.

Skoda will be launching the Kodiaq, its first large SUV in Europe early next year, followed by an India launch in the second half. The new model will open up new customer groups for the brand in India and abroad and is likely to help drive sales in the future. The upcoming launch of the new full-size SUV Kodiaq and the upgraded Skoda Octavia is likely to provide growth momentum for 2017, the carmaker believes.

Beyond the positive outlook for 2017, Skoda has set the course for long-term growth. The plan of action is set out in its ‘Strategy 2025’, with which the Czech manufacturer is preparing for the challenges facing the automotive industry. Key aspects of the future strategy include electric mobility, digitalising the company, products and manufacturing, as well as new mobility services and connectivity.

Going forward, the Czech carmaker is looking to drive growth on two fronts: Firstly, in terms of increasing vehicle sales; and secondly by expanding to include new business segments, such as digital mobility services.

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