Škoda Auto saw 42 percent drop in its operating profit in 2022

The operating profit of car manufacturer Škoda Auto fell by 42 percent to EUR 628 million last year, the parent company Volkswagen announced in its report on Tuesday. At the same time, sales increased by 18.5 percent to 21 billion euros. The drop in profit was caused by the war in Ukraine, but also by higher costs and unfavourable exchange rates.

Škoda Auto employs 45,000 people worldwide. In addition to Czechia, it has plants in China, Slovakia and India, as well as in Ukraine and Kazakhstan. Last year it announced that it was entering the Vietnamese market. In February 2022, Volkswagen Group decided to stop production in Russia and exports to Russia indefinitely due to the invasion of Ukraine.