| |
Skoda Set for 2008 Sales Record; Set to Double Model Line-Up by 2011—Report
15 May 08
Skoda is planning a major model launch programme which will consolidate its success as the VW Group's entry-level brand.
Global Insight Perspective | | Significance | Skoda is on target to set a new global sales record of over 700,000 units in 2008 and is looking to double its model line-up to eight separate ranges by 2011, according to a report in Autocar magazine. | Implications | The VW Group's decision to give a Skoda a full model range which includes an SUV and an MPV is an indication of its increasingly important position in the company's brand strategy. | Outlook | Under VW's ownership Skoda has gone from building crude utilitarian cars to becoming a key element in the VW's Group's drive to overtake Toyota as the world's biggest carmaker by sales volume. The brand's future looks assured and the reported ramp-up in model offerings could see sales volume double over the next decade. |
Skoda's Sales Success Set to Continue Skoda is on target to set a new sales record in 2008 of over 700,000 units, largely as a result of rising sales in its core markets of Eastern and Western Europe, up from the figure of 630,000 units the company sold in 2007. This sales increase has been driven by the company boasting one of the newest model ranges in the Volkswagen (VW) Group. The oldest model in the current Skoda line-up in the Octavia which debuted at the 2004 Geneva Motor Show. This was followed by the Roomster MPV in 2006, the second generation Fabia in 2007 and the new Superb, which was launched at this year's Geneva show. Speaking to Automotive News Europe at the press launch of Superb, Skoda's board member for sales Fred Kapler said, "We have growth in every car line. Even with the Superb—despite the model change—there is a certain increase. Indications are quite good, I am confident we can do it." The running year-to-date sales total that Skoda has recorded in the first four months of 2008 certainly indicates that Skoda is on target to hit its target of 700,000 sales. In the first four months of 2007 Skoda's sales have increased by 17.7% to 237,200 units, with the Octavia the company's best-seller across its global markets. It has also been reported that the company is also planning a major model launch programme that will see Skoda's range double in number to eight by 2011. Autocar has said that top-level Skoda sources have confirmed that the programme will see Skoda represented in all the major model segments. The programme will kick off with the launch of the production version of the Yeti sports-utility vehicle (SUV), which will make its official debut at the London Motor Show in July. The production version of the model will be similar in appearance to the original concept vehicle and will share a platform and powertrains with the Volkswagen (VW) Tiguan and the Audi Q5. According to the report, a surprising addition to Skoda's model line-up will be a new compact sedan which is scheduled to be launched next year. The all-new model will share the same platform with a similar VW model that is being developed to spearhead VW's push in the U.S. market. The model was said to be originally targeted at Eastern Europe and emerging markets, although this strategy has now been altered to encompass Western Europe as well. This model will boast sophisticated styling and will be slightly smaller than the existing Octavia. Skoda will also be allocated a version of the next Sharan multi-purpose vehicle (MPV), which will have seven seats and will enter the market in 2010. The company will also launch as estate version of the Superb at around this time. Perhaps the most surprising addition to the Skoda model line-up, according to the Autocar report, will be a Skoda version of VW's Up! city car concept that is due to be launched in 2011. Instead of keeping the new city car platform for the parent brand, VW will allow Skoda to launch its own version of the model, which may is likely to be a decontented version of the model aimed at emerging markets such as Eastern Europe and India. Skoda is said to be heavily involved with VW's city car project and will provide the three-cylinder engine that will provide the basic powertrain for the project, although fully electric and hybrid versions are also under development. Skoda and SEAT's Sales and Forecast Sales, 2003- 2013 | Brand | 2003 | 2004 | 2005 | 2006 | 2007 | 2008* | 2009* | 2010* | 2011* | 2012* | 2013* | SEAT | 454961 | 436359 | 417136 | 428856 | 445000 | 394822 | 405172 | 423335 | 449094 | 471500 | 480540 | Skoda | 444285 | 443626 | 481452 | 536017 | 630000 | 717302 | 787358 | 832512 | 865289 | 895379 | 895130 | Source: Global Insight
*Forecast |
Outlook and Implications Skoda is playing an increasingly important part in VW's global brand strategy and the unit has seemingly surpassed SEAT in its importance to the company's overall strategy. While SEAT has struggled to generate sales and profit increases in recent years, Skoda has gone from strength to strength, with its new model launches gaining praise for their quality, value and improved dynamic ability. While SEAT's sales have remained and are set to remain stagnant for the forecast period (see table above) Skoda's sales are set to double. However, this data does not yet include the ambitious forward model plans that Skoda have reportedly outlined, and its highly likely that these forecast sales in the early part of the next decade will be much higher as a result. Skoda's strategy of concentrating on providing spacious, reliable and high value cars which benefit from the VW Group's platform and powertrain technology has reaped obvious rewards, Coupled with a huge leap forward in design and build quality, this has seen the company go from the butt of jokes about its agricultural, eastern bloc model offerings in the 1980s to becoming a cornerstone of the VW brand empire.
|
|
|
