Skoda sales down 31% in H1 2020 but still records 228m euro operating profit

by Autocar Pro News Desk , 31 Jul 2020

Like most automakers the world over, Skoda Auto too has been impacted by the coronavirus pandemic. In the first half of 2020, the Skoda Group sold a total of 426,700 cars, down 31% year on year (January-June 2019: 620,900).

The Skoda Group sales revenue was 7.55 billion euros (Rs 62,415 crore) in the first six months, but the operating profit still amounted to 228 million euros (Rs 1,884 crore) – despite the 39-day shutdown of the Czech plants and the disruption to the sales channels, particularly in April. Against this background, the return on sales stood at 3.0%.

Since June, the Czech automobile manufacturer says it has been experiencing the positive effects of its restart programmes, which have been adapted to each market, and incoming orders have recently exceeded last year’s level. Provided the Covid-19 situation does not deteriorate significantly again, Skoda expects the conditions on the world markets to stabilise gradually over the coming weeks and months. Investments in tangible assets remained at a high level of 261 million euros over the past six months.

Skoda Auto CEO Bernhard Maier said: “Skoda Auto has performed well in recent years and has a solid financial foundation. In response to the current exceptional situation caused by the Covid-19 pandemic, we immediately implemented comprehensive measures to stabilise sales, sales revenue and operating profit. These measures are already proving effective and we will consistently continue along this path in the months ahead. I am convinced, that Skoda will emerge from this situation even stronger.”

The company remains committed to its medium and long-term goals and is consistently rolling out the largest model campaign in its history. The manufacturer plans to launch 30 new models, derivatives, product upgrades or variants between 2019 and the end of 2022.

Also, with the all-electric Enyaq iV, it is taking a major step forward in implementing its electric mobility strategy – the SUV is Skoda’s first electric vehicle to be developed as such from the outset. The most important Skoda model in 2020 will be presented to the public for the first time in September.

Tags: Skoda Auto

magazine image

Latest Auto industry updates and news articles