Skoda is celebrating five years of vehicle production in China. Sixty months after Oktavia production began at Shanghai Volkswagen, the company has sold around 740,000 cars built locally.
China is Skodas largest individual market, accounting for 25% of the brand’s worldwide sales. The dealer network is about 400 strong with plans to increase this number to over 600 mid-term. Skoda now aims to shift up a gear in the years ahead thanks to new models, expanded production capacity and strengthened dealer presence. This underscores China’s importance for the brand’s growth strategy.
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“For us, the past five years have been a success story without any other,” said CEO Winfried Vahland. “Together with our Chinese partners, we have raised the pace in all areas and turned the market into Skoda’s largest sales market with just three models. China has become a second home for Skoda. We have set the stage for further growth as we intend to raise our global sales to at least 1.5m a year by 2018. This is why we will be introducing new models in the Chinese market from 2013. We will also be strengthening our sales presence and cooperating under the roof of Volkswagen group and our joint venture partners to further increase capacities in China.”
Vahland added: “In 2007, Skoda was a manufacturer focussed on Europe. Only five years later, we have delivered around 740,000 cars to Chinese customers, a fantastic achievement for our company. We have established Skoda as a brand in just a few years in a market that is extremely competitive both in terms of quality and quantity.”
“Shanghai Volkswagen (SVW) has been a reliable and competent partner for Skoda. We are grateful to SVW for a good and trusting cooperation over the past five years and we are looking forward to opening the next chapter of our Chinese success story with them,” Vahland said.
SVW was founded in 1984.
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By GlobalDataBetween 2007 and 2011, Skoda increased annual deliveries to customers in China about eightfold. From just over 27,000 cars in 2007, the brand’s deliveries rose to 220,000 in 2011. Numbers continued their upward trend in the first five months of 2012, with deliveries rising 8% to a new high of over 100,000 units.
China has been the brand’s strongest individual market since 2010 and has been so with only three models. With almost half a million units produced, the Octavia is the most popular model in China. Since 2010, it has also been available in environment-friendly Green Line form and sporty RS.
The Fabia made its Chinese debut in 2008. Chinese buyers are also offered an off-road version called the Scout.
The Superb flagship has been sold in China since 2009. In 2011, it became the top seller in the premier middle class. China also accounted for over 40% of the 116,800 Superbs sold worldwide, making it the biggest market for this model.
In 2013, Skoda will be introducing two additional models in China, the new compact Rapid saloon and Yeti SUV. “The new models will give our brand an added push in China from 2013,” Vahland said.
Since its introduction in 2009, the Yeti has proved extremely popular in other markets, posting the strongest percentage growth of all Skoda model lines at almost 35% in 2011. “The Yeti is certain to hold its own in China and to contribute to the brand’s growth,” Vahland said.
Five years of Skoda production in China – data and facts
Product milestones:
- Summer 2007: launch of Octavia production
- 2008: Fabia launched
- 2009: Superb launched
- 2010: Octavia GreenLine, RS launched
- 2011: Fabia Scout launched
Number of cars sold by model line, January through May 2012:
- Octavia: 63,200
- Fabia: 20,700
- Superb: 16,700
