More international, electric and digital – ŠKODA AUTO presents its new corporate strategy

› ‘NEXT LEVEL – ŠKODA STRATEGY 2030’ ensuring success through the decade of transformation
› Strong in Europe: ŠKODA AUTO to become one of the five best-selling car manufacturers in Europe
› More e-mobility: At least three more all-electric models; share of ŠKODA brand sales in Europe to increase to 50-70% by 2030
› New sales markets: On the way to becoming the leading European brand in India, Russia and North Africa
› Simply Clever 2.0: ŠKODA AUTO as a benchmark for a Simply Clever User Experience
› Environmental targets significantly tightened: more than 50% reduction in fleet emissions by 2030 compared to 2020
› Ambitious financial targets: Cost leadership among core European competitors; sustainable return on sales of at least 8%.

Mladá Boleslav/ Prague, 24 June 2021 – ŠKODA AUTO will be steering successfully through the next decade with its new ‘NEXT LEVEL – ŠKODA STRATEGY 2030’, which lays out ambitious goals in the areas of internationalisation, electrification and digitalisation. The Czech car manufacturer aims to be one of the five best-selling brands in Europe by 2030, and the company plans to become the leading European brand in the growth regions of India, Russia and North Africa. In collaboration with political and business partners, as well as the Volkswagen Group, ŠKODA AUTO is also striving to develop its domestic market, the Czech Republic, into an electromobility hub in order to safeguard jobs and create new employment opportunities. Specific goals for sustainability and diversity are also firmly anchored in the new strategy. In implementing it, the focus will be on the two core principles of efficiency and simplicity.

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ŠKODA AUTO CEO Thomas Schäfer explains, “With our new NEXT LEVEL – ŠKODA STRATEGY 2030, we are providing specific answers on how we will successfully steer ŠKODA AUTO through the transformation process and ensure that the company will be in an even stronger position in 2030 than it is today. The brand has incredible potential. We will be leveraging this in the coming years and setting ourselves ambitious goals; we aim to be one of the top five car manufacturers in Europe in terms of sales; we are setting out to become the leading European brand in the growth regions of India, Russia and North Africa, and we are developing our home market of the Czech Republic into an electromobility centre so that we can safeguard jobs and create new ones. ŠKODA is entering this exciting future from a position of strength, and I am looking forward to working with our team of over 43,000 Škodians worldwide and our social partner KOVO to take our company to the next level in the years ahead.”

The new corporate strategy ‘NEXT LEVEL – ŠKODA STRATEGY 2030’ builds on the successes of the previous Strategy 2025. The company has defined a new vision and mission for its path towards the future. The new vision is ‘We will help the world live smarter’, and the new mission is ‘Modern accessible mobility with everything you need and surprises you love.’ At the same time, ŠKODA AUTO is committed to its proven brand values of ‘simplifying‘, ‘human’ and ‘surprising’.

Three top priorities ‘EXPAND’, ‘EXPLORE’ and ‘ENGAGE’ point the way forward
The ‘NEXT LEVEL – ŠKODA STRATEGY 2030’ focuses on three priorities, which are summarised under the headings ‘EXPAND’, ‘EXPLORE’ and ‘ENGAGE’. The overarching goal of the ‘EXPAND’ priority is to develop ŠKODA into one of the five best-selling car brands in Europe. On the one hand, this will be achieved by further strengthening the brand’s position in the entry-level segments. With an entry-level price of less than 14,000 euros, the new FABIA is setting the pace. On the other hand, the product portfolio will be expanded to include at least three more all-electric models by 2030, which will be positioned below the ENYAQ iV, both in terms of price and size. ŠKODA AUTO is aiming for a share of fully electric models of 50-70% in Europe, depending on market developments.

Safeguarding the future in the domestic market: Czech Republic to become an electromobility hub
To ensure that both ŠKODA AUTO and its domestic market, the Czech Republic, emerge stronger from the transformation process, the company is working with partners to transform the country into an electromobility hub. Specifically, e-components or e-vehicles will be produced at all three of ŠKODA AUTO’s Czech plants in Mladá Boleslav, Kvasiny and Vrchlabí by 2030. Already, high-voltage traction batteries are being produced for the plug-in hybrid models SUPERB iV and OCTAVIA iV as well as for models of other Group brands. At the beginning of next year, the production of MEB battery systems will also be launched in Mladá Boleslav for the ENYAQ iV. In addition, the Czech carmaker is working with partners to establish a stable supplier structure for e-mobility.

On the way to becoming the leading European brand in India, Russia and North Africa
The ‘EXPLORE’ priority includes establishing ŠKODA as the leading European car manufacturer in the growth markets of India, Russia and North Africa by 2030. This will result in a global sales potential of 1.5 million units per year. The company is responsible for these regions within the Volkswagen Group. Production of the KUSHAQ – the first ŠKODA model to be launched on the Indian market under the INDIA 2.0 project – started just recently. In the medium term, there are also plans to offer the KUSHAQ in other emerging markets.

‘Simply Clever 2.0’: ŠKODA will remain functional even in the digital age
The third priority, ‘ENGAGE’, comprises specific goals for the areas of digital customer experience, sustainability, diversity, and education and training. Among other things, the Czech car manufacturer intends to become the benchmark for a Simply Clever User Experience. Every customer should be able to operate a ŠKODA or a ŠKODA service intuitively from the outset. One of the first lighthouse projects is the PowerPass, which makes charging an electric ŠKODA model straightforward and convenient. It will be available in over 30 markets and can be used at more than 210,000 charging points in Europe. At the same time, purchasing a ŠKODA will also become an even more enjoyable experience. For example, the company is expanding its virtual showroom concept and has set itself the goal of selling one in five ŠKODAs online as early as 2025. Customers in Belgium, the Netherlands, Poland and the Czech Republic are already taking advantage of this option today.

Environmental targets significantly tightened: reduction of fleet emissions by more than 50%
ŠKODA AUTO is intensifying its sustainability efforts and tightening its environmental targets. The company aims to reduce its fleet emissions by more than 50% compared to 2020 and will be manufacturing vehicles with net-zero carbon emissions at all Czech and Indian plants from 2030 onwards. Production in Vrchlabí has already been CO2-neutral since the end of last year. The NEXT LEVEL – ŠKODA STRATEGY 2030 also places even greater emphasis on the topic of diversity; by 2030, one in every four management positions will be held by a woman. For ŠKODA AUTO, diversity, inclusion and equality are integral components of a corporate culture characterised by openness and tolerance. Moreover, as part of the radical transformation process, the Czech car manufacturer is promoting the training and further education of its employees and will be investing almost 500 million euros between 2022 and 2030, with the primary goal of safeguarding jobs for the future.

Efficiency and simplicity as guiding principles to accomplish the strategic objectives
To achieve the goals of the ‘NEXT LEVEL – ŠKODA STRATEGY 2030’, the company is focusing on efficiency and simplicity – two strengths that have always characterised the Czech car manufacturer. The aim is to attain cost leadership among core European competitors, coupled with a sustainable return on sales of at least 8% as the target figure. At the same time, the company is consistently simplifying its processes, reducing bureaucracy and complexity in order to become even more agile. For example, by gradually electrifying the model range, the complexity of the offering is to be reduced by 40% in the medium term.