SKODA 2013: Growth strategy successfully implemented
March 17, 2014: ŠKODA delivered 920,800 vehicles to customers in 2013 (2012: 939,200) › Record year with eight new or completely revised models › Second best sales year in ŠKODA’s history › Sales revenue once again over ten billion euros: €10.3 billion › Solid operating profit: €522 million › New ŠKODA Octavia a massive hit: Double-digit growth rates › ŠKODA model and design campaign continues to the next stage in 2014 › ŠKODA to produce a new model at Kvasiny plant › Best start to the year ever: 151,100 deliveries to customers by the end of February 2014
In 2013 ŠKODA AUTO continued to successfully implement the company’s growth strategy, despite it being a challenging year for the automotive industry. The Czech carmaker achieved the second-best sales year in its 118-year corporate history, delivering 920,800 vehicles (2012: 939,200 deliveries; down 2.0%). Following the model launches in the first half of 2013, ŠKODA’s deliveries increased later in the year. ŠKODA’s 2013 sales revenue amounted to €10.3 billion; well over the 10-billion-euro mark for the third year in a row. In a period of high investment, the company achieved a solid operating profit of €522 million. Investments amounted to €741 million. The Czech carmaker’s model campaign continues to the next stage in 2014, where ŠKODA will be focusing on a more emotional and expressive design language. At the same time, the company will also be strengthening its international sales activities.
“2013 was both an intensive and successful year for ŠKODA. We demonstrated strength in a challenging environment,” says ŠKODA CEO, Prof. Dr. h.c. Winfried Vahland. “With the record number of eight new or completely revised models, we launched more new cars than ever before and continued along our path of growth. Despite the above-average number of product launches and often challenging situations on the markets, we achieved the second-best sales figures of all time. Although cumulatively our delivery results were slightly down on 2012, we once again recorded growth in the second half of 2013 following the successful product launches. This positive trend has continued, with high growth rates recorded in the first months of 2014.”
After the first half of 2013, which was characterised by the difficult market situation in Europe, as well as the numerous production start-ups and associated low production volumes, ŠKODA picked up a lot of pace during the second half of the year with the full availability of the new models. This positive trend has continued to this day. As of the end of February 2014, ŠKODA deliveries had increased to 151,100 vehicles – up 10.6% over the same period last year. This is a record result for the first two months of a year.
“Our model campaign is now showing all its might. The strong start to the year, the encouraging number of orders coming in and the increasingly positive signals from the European markets give us reason to be optimistic for 2014. However, we still need to keep abreast of uncertain market developments,” explains Dr. Vahland.
2014: ŠKODA growth campaign continues with new models
The ŠKODA model and design campaign is moving into the next stage in 2014. The manufacturer presented the spectacular ‘ŠKODA VisionC’ design study at the Geneva Motor Show at the beginning of March. The emotionally-designed, five-door coupé highlights the dawn of the brand and is leading the next step in the evolution of ŠKODA’s design language. At the same, time the study shows the possibility of innovative ŠKODA body concepts.
Additionally this year, ŠKODA will be bringing out two fantastic new versions of the revised ŠKODA Octavia. The new ŠKODA Octavia Scout is a true scout in every sense and features a robust look, innovative all-wheel drive technology, and handles excellently both on and off the road. ŠKODA is also continuing the company’s CNG campaign, releasing the new ŠKODA Octavia G-TEC. The first series-produced CNG-Octavia offers clean mobility at an affordable price. Running on compressed natural gas, the car produces CO2 emissions of only 97 g/km. On CNG alone, the vehicle can travel up to 410 km without refuelling. Distances of up to 920 km can be travelled on petrol. This gives the Octavia G-TEC a total range of 1,330 km in combined cycle after one stop at the petrol station.
These two new versions of the Octavia – by far the company’s strongest model line – are paving the way to ŠKODA’s growth. The Octavia is the heart of the brand. The third generation Octavia, introduced in early 2013, is proving to be a massive hit. In Western Europe, the company has seen double-digit growth in sales of this car every month since August 2013. The new ŠKODA Octavia is available as a saloon, combi, combi 4×4 and the powerful Octavia RS. ŠKODA is winning over an increasing number of consumer groups with this, the third generation Octavia.
2013: Growth in Western & Central Europe
ŠKODA delivered a total of 920,800 vehicles in 2013; a slight decrease of 2.0% on 2012 (939,200 deliveries).
ŠKODA recorded growth in Western Europe, where the brand developed significantly better on the market that was generally in decline. Deliveries increased by 3.1% to 369,600 vehicles (2012: 358,400). ŠKODA’s market share grew to 3.2% (2012: 3.0%). In Germany, the company strengthened its position as the largest import brand.
ŠKODA also grew in Central Europe in 2013 with 126,500 deliveries to customers, representing an increase of 2.0 % (2012: 124,000). The brand’s share of the Czech market rose to over 19%. In the company’s home market, the Czech Republic, in Poland and also in Slovakia, the ŠKODA brand was the clear number one.
The manufacturer achieved 125,400 deliveries in Eastern Europe (2012: 137,100), where ŠKODA’s market share stood at just under 4%. ŠKODA delivered 87,500 vehicles to customers in Russia (2012: 99,100).
China was again ŠKODA’s strongest individual market for 2013. The manufacturer achieved a total of 227,000 deliveries on the Chinese market (2012: 235,700). The new Octavia is all set for its launch in China in mid-2014. 22,600 ŠKODA vehicles were delivered in India last year. The Czech brand recorded strong growth in Israel (14,400; +11.7%), Turkey (12,800; +23.2%) and Algeria (9,100; +85.3%).
Success with new models
With a total of 359,600 deliveries in 2013, the ŠKODA Octavia was once again the top-selling ŠKODA model by far (2012: 409,600). The decrease of 12.2% was due to the model changeover. Sales increased after the new Octavia began running again at full production capacity in the second half of the year. The ŠKODA Fabia achieved sales of 202,000 units last year. 240,500 of this model were sold in 2012. The launch of the brand new ŠKODA Fabia is set for Autumn 2014.
The new ŠKODA Rapid performed extremely well in its first full sales year. ŠKODA recorded a four-fold increase in sales of the Rapid over the previous year, with 103,800 units in 2013 (2012: 24,700) This makes the Rapid – available as Spaceback and saloon – ŠKODA’s third strongest model just two years after its market launch. The ŠKODA Rapid Spaceback, presented in mid-2013, was brands’ first compact hatchback. It was with this car that ŠKODA entered the highest volume segment in Europe.
In 2013, the ŠKODA Superb achieved 94,400 deliveries to customers (2012: 109,100). The brand’s flagship was extensively revised in mid-2013. The new ŠKODA Superb features new ŠKODA designs, fresh interiors and state-of-the-art technology. The fuel consumption and emissions of the engine range have been reduced by up to 19%.
82,400 of the ŠKODA Yeti were delivered in 2013 (2012: 87,400). ŠKODA’s popular compact SUV also received a major overhaul in terms of technology and design. The vehicle is now available for the first time in two versions: the elegantly-stylish ŠKODA Yeti for the city and the adventurous ŠKODA Yeti Outdoor. Both versions feature dynamic designs, the highest functionality and excellent handling on and off the road.
The ŠKODA Citigo – the smallest member of ŠKODA’s model range – has also done exceptionally well since its release in 2011. In 2013 deliveries increased by an impressive 51% to 45,200 (2012: 30,000). The ŠKODA Roomster won over 33,300 customers from around the world (2012: 38,000 deliveries).
ŠKODA’s 2013 financial figures
ŠKODA achieved a solid financial performance in 2013. Sales revenue totalled €10.3 billion; down slightly on the previous year due to lower volumes (2012: €10.4 billion). Operating profit stood at €522 million (2012: €712 million). The operating margin was 5.1% (2012: 6.8%). “Despite the difficult economic conditions in Europe and high expenditures to expand the model range, we were able to maintain the operating profit at a solid level. This was possible, primarily due to our cost reductions,” says ŠKODA CFO, Winfried Krause. The company’s investments in 2013 amounted to €741 million (2012: €832 million). Profit before tax amounted to €536 million (2012: €713 million). Profit after tax stood at €455 million (2011: €611 million).
ŠKODA plans further growth, investments in the Czech production plants
Over the coming years, ŠKODA plans to grow, and increase worldwide sales to at least 1.5 million vehicles per year. To this end, the company will be introducing a new or revised model every six months on average.
To support the plan, ŠKODA is continuously investing in the expansion of its Czech production plants. The Mladá Boleslav plant was thoroughly modernized and expanded to make way for the production of the new Octavia and its many variants, as well as the Rapid and Rapid Spaceback range.
ŠKODA has also invested in the production capacities at the Kvasiny plant in line with the launch of the Yeti and Superb facelifts. On the occasion of the visit of the Czech Prime Minister Bohuslav Sobotka in Wolfsburg, it was also announced that a decision has been made to manufacture an additional ŠKODA model at the Kvasiny plant.
As part of the model and design campaign the company is strengthening its marketing activities on the European and international markets. In addition to expanding the company’s solid position in Europe, the Czechs are focusing on the growth markets of China and Russia. The new ŠKODA Octavia is going to be launched in China in spring 2014. The production of the new ŠKODA Rapid in Russia started just a few weeks ago.