Škoda hopes for another year of record sales in 2013
The car manufacturer Škoda Auto has seen another year of record sales and growing revenues. In 2012, the German-owned, Czech based car producer sold nearly 940,000 cars world wide, mainly thanks to its expansion in China, Russia, and India. And the manufacturer hopes to set a new sales record this year, despite an expected slowdown in the first six months. I spoke to analyst Jiří Šimara from the Brno-based brokerage firm Cyrrus about Škoda’s performance in 2012.
Škoda has performed well particularly in China, Russia and India. There, the Škoda models that do best are mainly those from medium and premium classes. What makes Škoda cars so popular on those markets?
“Those markets are fundamentally different in customer needs. But Škoda is able to quickly determine those needs and meet them. So you can see one Škoda model with many differences depending on the market where it’s sold.”
The car market in the EU has seen a significant drop over the last few years. Do you think that demand for new cars in China, India and other countries in the region has a potential to grow?
“Yes, I think it does. In fact, many carmakers are betting on those countries to help them overcome the current problems in Europe. And I think those bets are going to be successful.”
Škoda Auto has launched what its managers call “a model offensive” with new models being put on the market. How will this affect the firm’s sales this year?
“Škoda is now very well prepared for any revival of the market with its new models; within a few days, they will present another new car to the public. So I think if the market starts to grow, Škoda will grow as well. But the first months of this year will be quite weak I think, given the changes in the model portfolio.”
“It all depends on how the markets will develop. If the markets – mainly in China and western Europe, and maybe in eastern Europe as well – are stable, Škoda may again make some records in terms of sales and production.”
Škoda, along with other car producers, is a major driving force of the Czech economy. Will their role grow this year?
“The Czech Republic is very attractive for carmakers thanks to its relatively cheap labour and its geographic location. There have talks in recent days that even BMW is considering investing here. So the importance of the car industry is crucial.”
