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Crisis-Proof – ŠKODA AUTO Swimming Upstream, Profitable in Year's First Half

When it comes to the obstacles the auto industry has been dealing with throughout 2022, the list of usual suspects comes down to 3 things – the Ukraine war, the chip shortage, and the crazy gas prices.
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ŠKODA AUTO seems to have zig-zagged its way through them all, and even though its global sales figures declined by 30%, the Group’s overall revenue still got a slight increase of 0.2%, reaching €10.2 billion ($10.43 billion).

In the first half of 2022, the Czech carmaker delivered 360,600 vehicles worldwide, down from 515,300 in the first half of 2021. The brand’s return on sales for the year’s first half stands at a positive 6.6%, compared to 9.6% for the same time last year.

Most notably, the company’s half-year results were impacted by consolidating OOO Volkswagen Group Rus under ŠKODA AUTO a.s. just before the Ukraine war started.

Despite the many geopolitical and macroeconomic challenges, it’s clear that ŠKODA AUTO is crisis-proof. Our business is robust, demand for our models remains high,” said ŠKODA AUTO CEO, Klaus Zellmer.

Given that Russia was the carmaker’s second most important market, having to suspend production at 2 of their plants in the country along with halting exports there proved to be challenging.
Thus, the Czech carmaker’s operating profit has seen a 30.6% negative change, reaching €676 million ($691.3 million) for January – June 2022, compared to €974 million ($996 million) in the same period last year.

Still, ŠKODA AUTO remains optimistic. The brand will continue its NEXT LEVEL EFFICIENCY+ program and still expects a robust return on sales for the year as a whole.

The brand is working on processing the backlog of orders and shortening customer waiting time, along with focusing on affordable entry-level models and developing its electrified portfolio.

With a high demand for its vehicles and an upcoming new brand identity reveal at the end of August, the future seems to be looking bright for ŠKODA.

press release
 
 
 
 
 

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