Škoda Auto: Robust earnings in 2023 exhibit sturdy enterprise mannequin inside ongoing transformation

The Škoda Auto Group1) achieved a document income of €26.5 billion in 2023 (2022: €21.0 billion; +26.2%). The corporate considerably elevated its working revenue by 182.3% in comparison with the earlier 12 months to €1.8 billion (2022: €628 million euros). The Czech carmaker additionally improved its return on gross sales (RoS) to six.7% (2022: 3%). Globally, Škoda Auto delivered 866,800 automobiles to prospects final 12 months (+18.5%). With 81,700 models offered, the Enyaq recorded the very best proportion development amongst all fashions (+52.1%), making it one of many top-selling BEVs in lots of European markets. By getting into the Vietnamese and Kazakh markets, the Czech automobile producer continued to implement its internationalisation technique. As well as, Škoda can also be resolutely implementing its plans within the areas of digitalisation and electrification: The corporate is dedicated to investing billions of euros in e-mobility within the coming years. These strategic investments, coupled with the corporate’s sturdy monetary efficiency, are important for guaranteeing its long-term success within the quickly evolving automotive business.

“With our outcomes for 2023, we now have as soon as once more demonstrated the resilience of our enterprise mannequin and nice flexibility. Our technique proves efficient and our numerous mannequin portfolio, which mixes the very best of each worlds, continues to ring a bell with our prospects. I sincerely thank all Škodians in addition to our retailers and companions all over the world for his or her continued efforts. They’re those who’ve made this attainable beneath demanding circumstances and in a quickly altering atmosphere. We’re conscious that this result’s only a snapshot because the competitors retains rising whereas the worldwide markets and shopper confidence will stay unstable. But this strong basis and the strategic measures are essential for us to proceed to make the required investments in our future. As we speak we’re presenting the following necessary step on this regard: The design research of our new all-electric metropolis SUV crossover Škoda Epiq, which will likely be formally unveiled in 2025 with a price ticket of round 25,000 euros, making e-mobility much more inexpensive.”

Klaus Zellmer, Škoda Auto CEO

“In 2023, we achieved the very best income in our firm’s historical past; at 26.5 billion euros, a 26.2% improve over the earlier 12 months. On the similar time, we greater than doubled our return on gross sales to six.7 per cent – with out the particular results from the discontinuation of our actions in Russia, it will even have been as excessive as 7.5 per cent. This impressively proves: Our Subsequent Stage Effectivity+ program is working, and the measures taken are having the specified impact. From this place of energy, we’re persevering with to take a position vital quantities in our ongoing transformation in direction of e-mobility and digitalisation regardless of market fluctuations and geopolitical uncertainties.”

Holger Peters, Škoda Auto Board Member for Finance, IT and Authorized Affairs

“We achieved nice gross sales numbers in 2023 with the Enyaq securing fourth place amongst all battery-electric automobiles throughout Europe. In Germany, our most necessary single market, it took third place and in our home Czech market in addition to in Slovakia, it even was the top-selling electrical mannequin. We now have additionally made progress in different key strategic areas: Via our Škoda X Innovation Hub, we now have persistently continued to digitalise the client journey across the automobile because of the mixing of companies corresponding to Pay to Park or Pay to Gasoline. And we now have taken the fitting steps to win over new prospects to our model: Our current entry into the necessary development market of Vietnam is strengthening our model within the ASEAN area. Moreover, after establishing the strategic collaboration with our native associate in Kazakhstan we’re able to re-enter this promising market this 12 months.”

Martin Jahn, Škoda Auto Board Member for Gross sales and Advertising

Elevated deliveries, robust outcomes

In 2023, Škoda Auto efficiently delivered 866,800 automobiles to prospects, an 18.5% improve over the earlier 12 months. The all-electric Enyaq recorded by far essentially the most substantial development amongst all Škoda fashions at 52.1% YoY. Financially, the Škoda Auto Group experiences a document income of €26.5 billion in 2023 (2022: €21.0 billion; +26.2%). The corporate considerably elevated its working revenue by 182.3% over the earlier 12 months to €1.8 billion (2022: €628 million). The RoS additionally improved to six.7% (2022: 3%). Škoda Auto achieved these outcomes towards the backdrop of a difficult market atmosphere, geopolitical uncertainties, rising materials and commodity costs and lowering buying energy. The automobile producer will use this robust basis to make vital investments in its future.

Škoda Auto Group¹⁾ – Key figures from January to December 2023²⁾

				2023	2022	change in %
Deliveries to prospects		vehicles		866,800	731,300	18.5
Deliveries to prospects excl. China		vehicles		844,000	686,700	22.9
Manufacturing3)		vehicles		1,006,800	862,000	16.8
Gross sales4)		vehicles		1,056,000	862,600	22.4
Gross sales income		€ million		26,536	21,026	26.2
Working revenue		€ million		1,773	628	182.3
Return on gross sales		%		6.7	3
Return on gross sales excl. Russia5)		%		7.5	6.2
Investments		€ million		1,913	2,009	-4.8
Web money circulate		€ million		938	489	91.8

¹⁾ Škoda Auto Group includes Škoda Auto a.s, Škoda Auto Slovensko s.r.o., Škoda Auto Deutschland GmbH, Škoda Auto Volkswagen India Pvt. Ltd. and till Might 2023, the Group additionally included OOO Volkswagen Group Rus, the monetary outcomes of that are included till then.
²⁾ Share deviations are calculated from non-rounded figures.
³⁾ Contains manufacturing within the Škoda Auto Group, excluding manufacturing at associate meeting vegetation in China, Slovakia and Germany, however together with different Group manufacturers corresponding to SEAT, VW and AUDI; automobile manufacturing excluding half/full kits.
⁴⁾ Contains Škoda Auto Group gross sales to distribution corporations, together with different Group manufacturers together with SEAT, VW, Audi, Porsche and Lamborghini; automobile gross sales excluding half/full kits.
⁵⁾ In Might 2023, the Volkswagen Group accomplished the sale of its property in OOO Volkswagen Group Rus to OOO Artwork-Finance, supported by the Russian Vendor Avilon.

Enticing, comprehensively up to date mannequin portfolio

These monetary achievements have been pushed by Škoda’s modernised line-up, providing prospects essentially the most in depth vary of fashions and powertrains within the model’s historical past. This consists of purely battery-electric automobiles, plug-in and mild-hybrid drivetrains, in addition to extremely environment friendly combustion engines. Over the previous 12 months, Škoda has comprehensively upgraded its mannequin portfolio: The refreshed compact fashions Scala and Kamiq have been joined by the newest generations of Škoda’s flagship fashions, the Kodiaq and Excellent, constructing on the success of their predecessors. As well as, the manufacturing of the Excellent has been relocated from Kvasiny to the Volkswagen model’s plant in Bratislava. It’s now produced alongside the Volkswagen Passat, delivering appreciable synergy results inside the Model Group Core.

Additional specializing in digitalisation and buyer centricity in 2023

Attaining future success within the core automotive sector rests on software program improvement. In 2023, establishing the Prague-based innovation hub, Škoda X, marked a decisive step in direction of the speedy improvement and integration of customer-focused improvements into Škoda’s automobiles. This consists of the in-car implementation of the AI-based chatbot ChatGPT, together with introducing digital companies corresponding to Pay to Park, Pay to Gasoline, and the Digital Certificates, amongst different options. The Czech automaker is firmly dedicated to persevering with its journey in digitalisation and spend money on digital companies, connectivity options, and superior machine studying applied sciences over the approaching years.

Efficiently implementing Škoda Auto’s internationalisation technique

Along with steady investments in key strategic areas, Škoda is persistently increasing its international footprint into dynamic market areas to make sure long-term success. In 2023, Škoda Auto entered the Vietnamese market, strategically main the way in which for the Model Group Core. The market presents promising development alternatives and serves as a gateway to the dynamic ASEAN area. Moreover, Škoda Auto has introduced its return to Kazakhstan, the place the model will supply the Kodiaq, Kamiq, Karoq and Octavia fashions, assembled domestically in Kostanay.

Škoda Auto’s 2023 sustainability achievements

In 2023, Škoda made tangible progress in direction of attaining its bold sustainability targets. In February 2023, Škoda commissioned a photovoltaic system at its Pune plant able to producing as much as 26.6 GWh of electrical energy yearly, thereby assembly as much as 30% of the positioning’s electrical energy wants. Furthermore, in autumn 2023, Škoda put in a rooftop photo voltaic system at its predominant plant in Mladá Boleslav. This generates greater than two gigawatt hours (GWh) of emission-free electrical energy per 12 months throughout an space of over 10,000 m2. As well as, the heating plant operated by ŠKO–ENERGO introduced transitioning from coal to 100% biomass. At its Czech services, Škoda Auto managed to scale back its environmental footprint by 56.4% in 2023 relative to 2010 throughout 5 key sustainability metrics: water utilization, vitality consumption, CO2 emissions, waste manufacturing, and unstable substance emissions. The corporate stays centered on minimising the ecological influence of its operations alongside the whole worth chain and is actively selling round financial system rules. By 2030, Škoda Auto goals to attain carbon neutrality in any respect its manufacturing websites within the Czech Republic and India.

Škoda’s strategic EV rollout: Introducing the Elroq and Škoda Epiq

With the extremely anticipated world premiere of the Škoda Elroq later this 12 months, Škoda is accelerating its daring mannequin marketing campaign that features the launch of six electrical fashions within the coming years. With this step, the Czech automobile producer will likely be increasing its electrical portfolio into the essential compact SUV section. The Elroq will likely be Škoda’s first electrical mannequin to embody the Trendy Strong design language, additional enhancing the outside design of its EV vary. Moreover, the lately previewed sub-compact SUV, the Škoda Epiq, presents a primary glimpse of Škoda’s strategy to entry-level BEVs. Slated for launch in 2025 and priced attractively at round €25,000, the Škoda Epiq is about to open up the strategically necessary section of electrical sub-compact SUVs. With a purpose to press forward with the transformation towards electrical mobility, the corporate is dedicated to investing billions of euros in e-mobility within the coming years.

SOURCE: Škoda