Škoda Auto: Strong earnings in 2023 demonstrate robust business model
within ongoing transformation

› Financial results: Škoda Auto Group reports record revenue of €26.5 billion in 2023, operating profit up 182.3% YoY to €1.8 billion; return on sales 6.7%
› Global deliveries: Škoda Auto delivered 18.5 per cent more vehicles than in the previous year and achieved the sharpest rise in deliveries of the all-electric Enyaq family across all models (+52.1%)
› Internationalisation: Car manufacturer enters dynamic growth markets of Vietnam and Kazakhstan
› Ongoing transformation: Results prepare Škoda Auto to successfully navigate growing market volatility and necessary investments of billions of euros in e-mobility
› 2024 outlook: Battery-electric Compact SUV Elroq will kick-off e-mobility campaign

Mladá Boleslav, 15 March 2024 – The Škoda Auto Group1) achieved a record revenue of €26.5 billion in 2023 (2022: €21.0 billion; +26.2%). The company significantly increased its operating profit by 182.3% compared to the previous year to €1.8 billion (2022: €628 million euros). The Czech carmaker also improved its return on sales (RoS) to 6.7% (2022: 3%). Globally, Škoda Auto delivered 866,800 vehicles to customers last year (+18.5%). With 81,700 units sold, the Enyaq recorded the highest percentage growth among all models (+52.1%), making it one of the top-selling BEVs in many European markets. By entering the Vietnamese and Kazakh markets, the Czech car manufacturer continued to implement its internationalisation strategy. In addition, Škoda is also resolutely implementing its plans in the areas of digitalisation and electrification: The company is committed to investing billions of euros in e-mobility in the coming years. These strategic investments, coupled with the company’s robust financial performance, are essential for ensuring its long-term success in the rapidly evolving automotive industry.

“With our results for 2023, we have once again demonstrated the resilience of our business model and great flexibility. Our strategy proves effective and our diverse model portfolio, which combines the best of both worlds, continues to strike a chord with our customers. I sincerely thank all Škodians as well as our retailers and partners around the world for their continued efforts. They are the ones who have made this possible under demanding circumstances and in a rapidly changing environment. We are aware that this result is just a snapshot as the competition keeps growing while the global markets and consumer confidence will remain volatile. Yet this solid foundation and the strategic measures are crucial for us to continue to make the necessary investments in our future. Today we are presenting the next important step in this regard: The design study of our new all-electric city SUV crossover Škoda Epiq, which will be officially unveiled in 2025 with a price tag of around 25,000 euros, making e-mobility even more affordable.”

Klaus Zellmer, Škoda Auto CEO

“In 2023, we achieved the highest revenue in our company’s history; at 26.5 billion euros, a 26.2% increase over the previous year. At the same time, we more than doubled our return on sales to 6.7 per cent – without the special effects from the discontinuation of our activities in Russia, it would even have been as high as 7.5 per cent. This impressively proves: Our Next Level Efficiency+ program is working, and the measures taken are having the desired effect. From this position of strength, we are continuing to invest significant amounts in our ongoing transformation towards e-mobility and digitalisation despite market fluctuations and geopolitical uncertainties.”

Holger Peters, Škoda Auto Board Member for Finance, IT and Legal Affairs

“We achieved great sales numbers in 2023 with the Enyaq securing fourth place among all battery-electric vehicles across Europe. In Germany, our most important single market, it took third place and in our domestic Czech market as well as in Slovakia, it even was the top-selling electric model. We have also made progress in other key strategic areas: Through our Škoda X Innovation Hub, we have consistently continued to digitalise the customer journey around the vehicle thanks to the integration of services such as Pay to Park or Pay to Fuel. And we have taken the right steps to win over new customers to our brand: Our recent entry into the important growth market of Vietnam is strengthening our brand in the ASEAN region. Furthermore, after establishing the strategic collaboration with our local partner in Kazakhstan we are ready to re-enter this promising market this year.”

Martin Jahn, Škoda Auto Board Member for Sales and Marketing

Increased deliveries, strong results
In 2023, Škoda Auto successfully delivered 866,800 vehicles to customers, an 18.5% increase over the previous year. The all-electric Enyaq recorded by far the most substantial growth among all Škoda models at 52.1% YoY. Financially, the Škoda Auto Group reports a record revenue of €26.5 billion in 2023 (2022: €21.0 billion; +26.2%). The company significantly increased its operating profit by 182.3% over the previous year to €1.8 billion (2022: €628 million). The RoS also improved to 6.7% (2022: 3%). Škoda Auto achieved these results against the backdrop of a challenging market environment, geopolitical uncertainties, increasing material and commodity prices and decreasing purchasing power. The car manufacturer will use this strong foundation to make significant investments in its future.

Škoda Auto Group1)Key figures from January to December 20232)

         2023  2022 change in %
Deliveries to customers   cars   866,800 731,300 18.5
Deliveries to customers excl. China   cars   844,000 686,700 22.9
Production3)   cars   1,006,800 862,000 16.8
Sales4)   cars   1,056,000 862,600 22.4
Sales revenue   € million   26,536 21,026 26.2
Operating profit   € million   1,773 628 182.3
Return on sales   %   6.7 3  
Return on sales excl. Russia5)   %   7.5 6.2  
Investments   € million   1,913 2,009 -4.8
Net cash flow    € million   938 489 91.8

1) Škoda Auto Group comprises Škoda Auto a.s, Škoda Auto Slovensko s.r.o., Škoda Auto Deutschland GmbH, Škoda Auto Volkswagen India Pvt. Ltd. and until May 2023, the Group also included OOO Volkswagen Group Rus, the financial results of which are included until then.
2) Percentage deviations are calculated from non-rounded figures.
3) Comprises production in the Škoda Auto Group, excluding production at partner assembly plants in China, Slovakia and Germany, but including other Group brands such as SEAT, VW and AUDI; vehicle production excluding part/complete kits.
4) Comprises Škoda Auto Group sales to distribution companies, including other Group brands including SEAT, VW, Audi, Porsche and Lamborghini; vehicle sales excluding part/complete kits.
5) In May 2023, the Volkswagen Group completed the sale of its assets in OOO Volkswagen Group Rus to OOO Art-Finance, supported by the Russian Dealer Avilon.

Attractive, comprehensively updated model portfolio
These financial achievements were driven by Škoda’s modernised line-up, offering customers the most extensive range of models and powertrains in the brand’s history. This includes purely battery-electric vehicles, plug-in and mild-hybrid drivetrains, as well as highly efficient combustion engines. Over the past year, Škoda has comprehensively upgraded its model portfolio: The refreshed compact models Scala and Kamiq were joined by the latest generations of Škoda’s flagship models, the Kodiaq and Superb, building on the success of their predecessors. In addition, the production of the Superb has been relocated from Kvasiny to the Volkswagen brand’s plant in Bratislava. It is now produced alongside the Volkswagen Passat, delivering considerable synergy effects within the Brand Group Core.

Infographic: Škoda Auto: Strong earnings for 2023 lay solid foundation for electric transformation

Further focusing on digitalisation and customer centricity in 2023
Achieving future success in the core automotive sector rests on software development. In 2023, establishing the Prague-based innovation hub, Škoda X, marked a decisive step towards the rapid development and integration of customer-focused innovations into Škoda’s vehicles. This includes the in-car implementation of the AI-based chatbot ChatGPT, along with introducing digital services such as Pay to Park, Pay to Fuel, and the Digital Certificate, among other features. The Czech automaker is firmly committed to continuing its journey in digitalisation and invest in digital services, connectivity features, and advanced machine learning technologies over the coming years.

Successfully implementing Škoda Auto’s internationalisation strategy
In addition to continuous investments in key strategic areas, Škoda is consistently expanding its global footprint into dynamic market regions to ensure long-term success. In 2023, Škoda Auto entered the Vietnamese market, strategically leading the way for the Brand Group Core. The market offers promising growth opportunities and serves as a gateway to the dynamic ASEAN region. Additionally, Škoda Auto has announced its return to Kazakhstan, where the brand will offer the Kodiaq, Kamiq, Karoq and Octavia models, assembled locally in Kostanay.

Škoda Auto’s 2023 sustainability achievements
In 2023, Škoda made tangible progress towards achieving its ambitious sustainability goals. In February 2023, Škoda commissioned a photovoltaic system at its Pune plant capable of generating up to 26.6 GWh of electricity annually, thereby meeting up to 30% of the site’s electricity needs. Moreover, in autumn 2023, Škoda installed a rooftop solar system at its main plant in Mladá Boleslav. This generates more than two gigawatt hours (GWh) of emission-free electricity per year across an area of over 10,000 m2. In addition, the heating plant operated by ŠKO–ENERGO announced transitioning from coal to 100% biomass. At its Czech facilities, Škoda Auto managed to reduce its environmental footprint by 56.4% in 2023 relative to 2010 across five key sustainability metrics: water usage, energy consumption, CO2 emissions, waste production, and volatile substance emissions. The company remains focused on minimising the ecological impact of its operations along the entire value chain and is actively promoting circular economy principles. By 2030, Škoda Auto aims to achieve carbon neutrality at all its manufacturing sites in the Czech Republic and India.

Škoda’s strategic EV rollout: Introducing the Elroq and Škoda Epiq
With the highly anticipated world premiere of the Škoda Elroq later this year, Škoda is accelerating its bold model campaign that includes the launch of six electric models in the coming years. With this step, the Czech car manufacturer will be expanding its electric portfolio into the crucial compact SUV segment. The Elroq will be Škoda’s first electric model to embody the Modern Solid design language, further enhancing the exterior design of its EV range. Additionally, the recently previewed sub-compact SUV, the Škoda Epiq, offers a first glimpse of Škoda’s approach to entry-level BEVs. Slated for launch in 2025 and priced attractively at around €25,000, the Škoda Epiq is set to open up the strategically important segment of electric sub-compact SUVs. In order to press ahead with the transformation toward electric mobility, the company is committed to investing billions of euros in e-mobility in the coming years.

Additional info



Related Press Releases Based on tags: 2024, Annual Press Conference, BEV, board members, China, customers, deliveries, electro vehicle, electromobility, eMobility, Europe, India, Innovations, Jahn, Peters, sales, Zellmer