Skoda Sets Ambitious 1.5 Million Global Sales Target for 2018
Skoda aims to reach 1.5 million global sales by 2018, with China expected to contribute 500,000 units, over double its 2011 performance.
Skoda has set its sights on selling 1.5 million vehicles globally in 2018, with China expected to account for 500,000 units. The Czech brand’s chairman, Winfried Vahland, outlined the target as part of a broader growth strategy following record sales in 2011.
The 2011 total of 879,200 vehicles marked Skoda’s best-ever annual result. Vahland said the company’s future growth would rely heavily on China, which delivered 220,000 sales in 2011. By 2018, Skoda expects China to generate around one-third of its global sales, more than doubling its volume in the country.
China’s role in Skoda’s growth plan
Skoda’s strategy calls for China to deliver 500,000 sales in 2018, making it the brand’s single largest market. If achieved, this would represent more than half of Skoda’s targeted 900,000 sales outside Europe. The company expects the balance of its global sales to shift significantly, with non-European markets growing from 40 percent in 2011 to 60 percent by 2018.
This approach mirrors the broader Volkswagen Group strategy, as VW aims for 4 million annual vehicle production in China by 2018. Skoda’s targets align with the rapid growth seen by other global brands in China, such as Chevrolet and Toyota, both of which have posted strong gains in recent years. For context, see Chevrolet Surpasses 218,000 Sales in China, Becomes Brand’s Third Largest Market.
Product range and production expansion
To support these ambitions, Skoda plans to expand its production capacity through 2015. The company will introduce several new models, including the five-door Citigo subcompact, a new compact sedan positioned between the Fabia and Octavia, and two SUVs, one larger than the Yeti, to be built in China, and the other set for global markets. The Yeti SUV will also begin local production in China to better serve regional demand.
- Five-door Citigo subcompact
- New compact sedan (between Fabia and Octavia)
- Yeti SUV (local production in China)
- Larger SUV for Chinese market
Skoda’s model offensive is designed to appeal to both European and Chinese buyers, with particular emphasis on localising production for China. The company expects these new products to be central to achieving its volume goals.
What the targets mean for Skoda and the market
If Skoda reaches its 1.5 million sales target, it will more than double its 2011 output within seven years. The emphasis on China reflects both the size and growth rate of the market, as well as the competitive pressure from rivals expanding their own Chinese operations. Skoda’s growth plan will likely require ongoing investment in local manufacturing and dealer networks, as well as continued product adaptation to Chinese consumer preferences.
