BEV or ICE? Škoda’s future will be balanced range

2024 was a very successful year: record financial results, over 920,000 cars delivered, 4th place in sales in Europe, new models, new markets. What’s your plan looking ahead? 
Klaus Zellmer: 2024 demonstrated our core strengths: resilience and adaptability. A robust business model and a clearly defined roadmap are proving their value in volatile times. The combination of our modern and diverse product lineup with our operational efficiency have attracted customers and enabled us to outperform the market, particularly in Europe. These achievements are fundamental to keeping our company on track, even as we face upcoming challenges. But we have to look further to the future and work hard to stay on track.  

And that’s why you have updated the corporate strategy? 
Klaus Zellmer: Absolutely. We have outlined six strategic targets to further future proof the company. At Škoda, our first target is to rank among Europe’s top three best-selling brands by the end of the decade. We believe we can achieve this with our portfolio of all-electric models, improved hybrids, and highly efficient ICE models. We always prioritize offering great value for money and quality across all relevant customer segments.  

And what does your second target focus on? 
Klaus Zellmer: For our second target, we focus on improving our products and services with innovative digital solutions and AI. We foster a learning and agile mindset among our employees while advancing digitalization across the company. By listening to our customers, we can better optimize our products and digital services while integrating new AI features. We remain committed to ensuring intuitive functionality and best-in-class quality. 

In Europe, Škoda now offers pure electric, plug-in hybrid and internal combustion vehicles.

Škoda aims to offer the best of both worlds – electric and combustion drivetrains – to its customers. Which of these technologies will be prioritised?  
Klaus Zellmer: In the coming years, we will continue to provide a balanced range of BEV, hybrid, and ICE models based on consumer demand. This is a key part of our third strategic target, but we also aim to boost our all-electric ambitions with an expanding portfolio of electric models – while working towards price parity with comparable ICE models.  

Sustainability is a major focus for many companies today. What are Škoda's plans in this area?
Klaus Zellmer: Our fourth target is achieving CO2-neutral production and putting circular economy first. Our sustainability strategy, ‘Best-in-class in ESG’, sets clear, ambitious goals across environment, social, and governance pillars. We aim for CO2-neutrality at all our plants in the Czech Republic and India by 2030, applying circular economy principles, and incorporating further sustainable materials into our products.  

The Škoda Kylaq was introduced last year. This compact SUV joins other models developed for the Indian market: the Slavia sedan and the Kushaq SUV.

Talking about India: Škoda’s presence in those rapidly growing markets is quite important. 
Klaus Zellmer: We want to establish a strong “second leg” outside Europe, in rapidly growing markets. As part of the Brand Group Volume, we are leveraging our expertise in price-sensitive growth markets to unlock new growth potential for the Volkswagen Group. We aim to become the leading European brand in India and the ASEAN region of Southeast Asia. We are now operating in Vietnam, producing with a local partner as well as importing cars, and plan to use this presence as the entry platform to neighbouring countries.  

There are also financial goals Škoda is aiming to achieve.
Klaus Zellmer: Last but not least, we want to enable a sustainable return on sales of 10% in the long term. Through our Next Level Efficiency+ programme, we aim to optimize operations. We strive for cost leadership among core European competitors, ensuring Škoda remains competitive during the automotive industry's transformation. However, what is also necessary to achieve this goal are the expected decreasing battery prices in the coming years as well as the efficient scaling of our products via new platforms in the future.