Russia exit and supply troubles stifle Skoda sales in 2022

Skoda’s sales fell for a fourth consecutive year in 2022 as the semiconductor shortage, supply-chain challenges and rising energy costs limited production volumes. The Czech company maintains a “high order backlog”, it said in a statement, demonstrating "strong customer demand" for its cars. In total, Skoda delivered 731,300 cars during 2022, 149,600 (16.7%) less than in the previous year. All but two of the brand’s models suffered a reduction in sales. The Octavia fastback/estate remained the most popular choice, with 141,100 sales, but this was almost 30% down on 2021, itself a down year. The family car remains one of Skoda’s most important products, both fiscally and for the brand’s identity. Skoda CEO Klaus Zellmer told Autocar in September: “The Octavia is rock solid. It has got its customer base, and we're market leaders for the [estate] segment. Never change a winning team. I think that car is Skoda [through and through].” The Kamiq crossover and Kodiaq SUV took second and third place with 96,300 and 94,500 sales respectively – the former a 20.3% dip from the previous year. Skoda’s only models to record growth in 2022 were the Enyaq iV electric SUV, with 53,700 sales (up 20% year on year), and the Indian-market Kushaq with 26,800 (up 110.2%). Although the latter appears to have gained significant traction, it should be noted that 2022 was the Kushaq’s first full calendar year on sale. More significant was the fact that the model, developed especially for India, prompted growth in the region of 127.7% year on year to 51,900 cars. That was sufficient to make India Skoda’s third-largest single market, behind the Czech Republic (71,200) and Germany (134,200). This year’s launch of the Slavia, also developed for India, should prompt further growth. Western Europe was Skoda’s highest-volume market in 2022, accounting for 377,000 sales – more than half the global tally. That was down 7.8% from the 409,000 recorded the previous year. Central Europe followed with 148,000 deliveries, 9.8% fewer than in 2021. Skoda took a significant hit by exiting Russia after that country invaded Ukraine. Sales there totalled 18,300, down 79.8% on the 90,400 recorded the previous year, when it was the brand's second-largest single market. Sales in the highly competitive Chinese market dipped 37.4% year on year to 44,600 cars. German trade paper Automobilwoche reported last month that Skoda may exit China to boost sibling brand Volkswagen, refocusing on the emerging Vietnamese market. Skoda’s expansion into Vietnam will mirror its Indian venture, offering the Kushaq and Slavia. Initially, the brand will offer imported, Indian-built examples of the two models, anticipating 30,000 annual sales. Partner firm Thanh Cong Motor (TC Motor) will begin local assembly using knock-down kits from 2024. On Skoda’s 2022 performance, Zellmer said: “Never before in its recent history has Skoda Auto been confronted with such extensive challenges as in the past year. “Despite these difficult times, our company is making steady progress, thanks to an attractive and modern model portfolio comprising e-models and ICE cars, as well as our strong, motivated team and the close co-operation with our social partner Kovo [a trade union]. “We’ve demonstrated resilience, a quality that's more important than ever in a fast-changing environment. With the acceleration of our e-offensive, we’re well positioned for the upcoming years and will continue to strengthen the Czech Republic as a key automotive and e-mobility hub. “The market situation will remain tense in 2023, but we’re cautiously optimistic that the situation will improve in the coming months. “Furthermore, our strategy is already proving successful, and our products are very well received by customers. “Thus we’re building on a very solid foundation to successfully steer Skoda through 2023, when we will introduce the new generation of our Superb and Kodiaq, among other projects.” Martin Jahn, board member for sales and marketing, added that “the work on our e-offensive is in full swing”, three EVs being slated for launch “as early as 2026, with more to follow”.