“Thirty-five years ago, joining the Volkswagen Group marked the beginning of a remarkable Czech–German success story. Škoda Auto has transformed into a strong, global brand – rooted in its identity, driven by ingenuity, and defined by a clear ‘can do’ attitude. Being part of the Volkswagen Group and the Brand Group Core gives us a powerful foundation to grow and compete. It allows us to benefit from scale, making us faster, more efficient, and better positioned to deliver outstanding value and a broad choice of powertrains to our customers.
Škoda has built a distinct and resilient role within the Group. We are growing successfully in more than 100 markets, with India as a strong second pillar, and we are contributing as a key component hub – supplying engines, transmissions, and today leading in the production of BEV battery systems. Now we are accelerating our electric transformation. With upcoming models like Epiq and Peaq, we are expanding our portfolio and making electromobility more accessible – true to our mission within the Brand Group Core.
This success is built on strong collaboration across the Group, within our company, and with our partners. I want to thank our employees and our trade union partner KOVO for their constructive and reliable cooperation over many years. Together, we combine scale with identity, efficiency with creativity, and tradition with innovation – giving us confidence for the future.”
Klaus Zellmer, CEO of Škoda Auto
Škoda Favorit sparked Volkswagen’s interest
The first contacts between Škoda Auto and the Volkswagen Group can be traced back to the 1970s. However, the real catalyst for closer ties between the two carmakers was the development and production of the new Škoda Favorit, introduced in 1987. During talks on potential cooperation and the use of selected components, including powertrains, a Favorit prototype was tested in Wolfsburg. This exchange established important relationships: the highly skilled Škoda specialists made a lasting impression thanks to their ability to respond flexibly to complex development and engineering challenges.
After the fall of the communist regime in Czechoslovakia in November 1989, it became clear that Škoda needed a strong strategic partner to compete in the global market. Annual production capacity stood at around 200,000 vehicles, and the portfolio comprised just two models: the Škoda Favorit and the Forman estate. During the privatisation of the state-owned carmaker, Volkswagen emerged as one of the leading candidates among 24 potential partners. The agreement establishing a joint venture between the Czech government and the Volkswagen Group was signed on 28 March 1991 by Minister of Industry Jan Vrba and Volkswagen Chairman Carl Hahn. After the Volkswagen Group had fulfilled its contractually agreed commitments, it acquired an initial 31 per cent stake in Škoda Auto on 16 April 1991, which was subsequently increased to 100 per cent by 30 May 2000.
Expanding the model portfolio and production capacity to support international growth
Škoda Auto’s development over the following decades was underpinned by an extensive investment programme worth several hundred billion Czech crowns, as well as close coordination with other Group brands. This enabled the company to evolve into an internationally successful car manufacturer with expanding production capacity, a broad model portfolio and access to international markets.
In 2025, Škoda became the third best-selling brand in Europe, delivering more than 1,040,000 vehicles to customers. Alongside its three production plants in the Czech Republic, Škoda today operates production facilities in Slovakia, Kazakhstan and India, mostly through Group partnerships, and manufactures vehicles in Vietnam and Ukraine in cooperation with local partners. With a special focus on India, Škoda is establishing the subcontinent as a strong second pillar alongside Europe, achieving record deliveries there in 2025, driven by its locally developed model line-up: Kushaq, Slavia and, in particular, the Škoda Kylaq. In addition, the company started production in Vietnam and expanded its presence in the Middle East with market entries in Oman and Saudi Arabia.
Driving electric mobility
By the end of this year, Škoda will double its all-electric portfolio with the seven-seater Peaq and the urban crossover Epiq, offering customers even more choice. As part of the Volkswagen Group’s Electric Urban Car Family, the Epiq will help make electric mobility more accessible while leveraging synergies across the Group.
In addition, Škoda is a key component supplier within the Volkswagen Group. With the recent opening of its new battery production facility in Mladá Boleslav, Škoda has become the Volkswagen Group’s largest manufacturer of BEV battery systems. The €205 million investment is part of the Group’s overall battery strategy and supports the faster rollout of new technologies in close cooperation with the Volkswagen Group Technology Center of Excellence Battery.
