Combustion or Electric – We Offer the Best

Combustion or Electric – We Offer the Best

Škoda Auto is celebrating its 130th anniversary at a time when the automotive industry is undergoing its greatest transformation yet. In an interview with the online magazine Škoda Storyboard, Škoda Auto CEO Klaus Zellmer discussed how the company is navigating this change.

Last year was very successful for Škoda Auto; it achieved record financial results, delivered over 920,000 cars, and was the fourth best-selling brand in Europe. It also launched new models and entered new markets. What are its plans for the future? 

2024 showed our strengths: resilience and adaptability. Our comprehensive business model and clearly defined plan have proved their worth in uncertain times. Our products attracted customers and, together with operational efficiency, enabled us to outperform the market, especially in Europe. These successes are essential for us to continue on our path and face the challenges ahead. However, we must also look to the future and work hard.

The future of Škoda Auto will be secured by a balanced range of electric and combustion models.

Is that why the carmaker has updated its strategy?

Absolutely. We want Škoda to be among the three best-selling brands in Europe by the end of the decade. We are confident that we can achieve this thanks to a portfolio that includes fully electric models, improved hybrid vehicles and models with highly efficient combustion engines. Our priority is to consistently deliver excellent value for money and quality across all relevant customer segments while continually improving our products and services through innovative digital solutions and AI. We encourage our employees to think actively and be open to learning while also improving the digitisation of the entire car manufacturer. We listen to our customers and optimise our products and digital services by integrating AI elements.  

Škoda aims to offer customers the best of both worlds – electric and combustion engines. Which will take priority?

We will continue to offer a balanced range of electric and hybrid models, as well as cars with combustion engines. At the same time, however, we will expand our portfolio of electric models while working to bring their prices closer to those of comparable combustion engine models. 

What are Škoda Auto’s plans in terms of sustainability? 

We aim to achieve carbon neutrality in production. Our sustainability strategy sets clear goals in the environmental and social areas, as well as in management and administration. By 2030, we intend to achieve carbon neutrality at all our plants in the Czech Republic and India.

Speaking of India... The presence of the Škoda brand in these fast-growing markets is very important.

Our goal is to build a strong “second pillar” outside Europe in these markets. As part of the Brand Group Core, we are using our expertise in price-sensitive markets to unlock new growth potential for the VW Group. We wish to become the leading European brand in India and the ASEAN region. We’re now operating in Vietnam, manufacturing with a local partner and importing cars. We also plan to use this presence as a platform for entering neighbouring countries. 

Škoda also has financial goals. 

Last but not least, we aim to achieve long-term sustainable profitability of 10% on sales. We intend to optimise operations through the Next Level Efficiency+ program. We also strive to achieve a leading position among our main European competitors in terms of costs in order to ensure our competitiveness during the transformation of the automotive industry. However, to achieve this goal in the coming years, we need to reduce battery prices and effectively scale our products through new platforms.