Skoda has managed to make a profit in 2020, although it is considerably less than a year earlier. The Czech manufacturer, like almost everyone else, was faced with a sharp drop in sales due to the pandemic.
Skoda closes fiscal year 2020 still reasonably positive. The brand announces that it has posted an operating profit of € 756 million. That sounds like a lot, but it is 54.5 percent less than a year earlier, when it amounted to € 1.66 billion. Nevertheless, people in the Czech Republic will undoubtedly be satisfied that it is at least able to write black figures. Turnover also fell, but less sharply. At € 17.08 billion, this was 13.8 percent lower than in 2019.
Significant sales declines and various production breaks have of course depressed the results considerably last year. The sales figures do not lie: Skoda sold just over 1 million cars in 2020, 19.1 percent less than in 2019. The biggest blows were in Eastern Europe (-20.8 percent) and China (-38.7 per cent). In our part of Europe, Skoda sold 434,500 cars in 2020, 16.5 percent less than a year earlier.
In absolute numbers, despite the huge decline, China was still the largest market, where Skoda sold 173,000 cars. Germany, Russia, home country the Czech Republic and the United Kingdom complete the top 5. Traditionally, the most popular model was the Octavia. Skoda sold 257,400 of these in 2020. The Karoq follows in second place with 137,200 units. The Kodiaq (131,600), Kamiq (128,500) and Fabia (105,500) will follow. The bet on more SUVs / crossovers is therefore not an empty exercise for Skoda. The sale of the Rapid is also striking. The compact sedan no longer available here is still doing well in growth markets, because Skoda sold 79,700 of them in 2020.
Investment
Skoda naturally expects that 2021 will turn out to be a better year for sales in any case. At the same time, the brand’s cash will get an extra blow, as Skoda will set aside € 2.5 billion over the next five years to invest in electric mobility. The majority of this, € 1.4 billion, is invested by the brand in the development of more electric models. € 650 million will go into ‘digitization’, so probably software. € 350 million is to be used, among other things, to prepare factories for the arrival of more MEB-based models. This should mainly happen in Kvasiny, where space is being freed up by moving the Superb production to Bratislava. Skoda also expresses the wish to ‘one day’ open a ‘giga factory’ in the Czech Republic, so there may be an investment on top.