“Revenue of Skoda declines 13% over the same period last year, profit declines 46%.” Volkswagen Group announced operation situation of Skoda at the first half this year. Personage inside industry isstunned by the revenue and profit slide downward to such a large extent.
Skoda says that Europeanmarket shrinks and some models are under successor are main reasons for the decline.
Compared with the same period of last year, revenue of Skoda declined 13% to 4.97 billion at the first half this year. And profit declined 46% to 243 million. However, Skoda maintains its goal, and still expects over 930 thousand cars sales globally.
Skoda sold 460 thousand cars globally at the first half this year, 5.8% less than last year’s 490 thousand sales,and 0.4% less in China market to 120 thousand. Major sales of Skoda, the brand from Czechs, come from European market, but Chinese market takes quarter of its market share.
Chinese market obviously is important for Skoda. According to its plan, Skoda’s goal is 1.5 million car sales globally, includes 500 thousand cars of Chinese market. However, Skoda sold 460 thousand cars globally, includes 120 thousand in China at the first half this year. It should be anunacceptable result for Skoda because of 10% increase of Chinese car industry.
Skoda has not entered China for a long time. Winfried Vahland, Global Chairman of Skoda, said Skoda is the fastest European car to achieve 1 million sales in China on 9 July at the ceremony of the 1 million car rolled off. Personage inside industry believes that Skoda develops fast, but it is only the sixth year of Skoda enters China, and sales achieved 1 million only, the company still has a long way to go.
In fact, decline of Skoda appearsin 2012. Skoda sold 230 thousand at 2012, and China becomes one of its largest markets. However, compared with 10% sales increasein 2011, Skoda only achieves 4.5% at 2012. Except Octavia, Fabia and Greenline have declined last year.
At the first half of this year, problem of car model become sharper. Octavia, as a star product, is during successor replacing time. Rapid was launched for sales quantity at April this year, but it still needs time to climb up. However, the good news is with the development of Rapid and China-made SUV Yeti roll off, Skoda may have a bright future at the next half year.
