Klaus Zellmer
Chairman of the Board of Management
Škoda Auto a.s.
Dear Readers,
In 2025, we have the potential to become one of the most successful volume brands in the automotive industry. That said, 2025 could also prove to be one of the most challenging years in our history. External factors will only continue or become stronger next year, including global economic uncertainty, increased competition from Asia, and geopolitical volatility. In addition, potential fines for CO2 tailpipe emissions in Europe are a topic for all carmakers in 2025, as stricter EU limits come into force and consumer appetite for electric vehicles remains uncertain.Against this background, it is worth noting that 2025 will mark our 130th anniversary. In that time, we have thrived through many a transformation. We have reported a championship year in 2024. We will not simply rest on our laurels but continue to work on getting even better at what we do – like any championship–winning team does before the next season. Going forward, we will focus on becoming an even higher performing organization in order to sustain our company for the future.
Simply put, 2024 was the best year in the history of Škoda Auto in terms of brand position and financial results. This is due first of all to the dedication and focus of everyone who makes up the “Green Team”, from our suppliers and dealer partners to the Škodians who develop, build and sell our cars, the staff who support them and our social partner KOVO. Thanks to them, in 2024 we had the most up-to-date and diverse product portfolio ever, offering customers freedom of choice between highly efficient petrol and diesel models, mild and plug-in hybrids, and a growing range of purely electric options.This product firework, combined with a relentless focus on customer centricity, helped us advance in the past year to the 4th best-selling automotive brand in Europe. This is a significant milestone, and I am deeply grateful to our fleet and retail customers for their positive response. In total, we delivered 926,567 vehicles to customers, including 79,553 all-electric vehicles.We achieved this progress while not only remaining efficient but increasing our profitability, helping ensure the continued resilience of our company for the future of our employees, their families and broader communities. Return on sales for the year was 8.2% versus 7.2% in 2023. We achieved record sales revenue of €25.5 billion, up 6% from the previous year, and grew operating profit by 20.5% to €2.1 billion. Net cash flow more than doubled to a noteworthy €1.9 billion. These results came despite a slowing overall automotive market in Europe, growing global competition, and continued cost factor challenges including high energy prices in our primary production locations.We continued to build out our internationalisation program. While we’re performing well in Europe, our strategic intent is to have a strong second base. This is precisely why we are striving for success in India as the most promising market in the world. By 2030, India will become the third-largest economy globally. With our new Kylaq model, we have a significant opportunity to exceed annual sales of 100,000 vehicles as early as 2025. Moreover, India serves as a key base for our growth in other regions including ASEAN and the Middle East. Plans to start production with a partner in Vietnam are also moving ahead, generating new potential in another fast-growing regional market that Škoda entered in 2023 with imported models.The foundation of our success is a solid financial position. We need our own resources to ensure we have our future firmly in our hands. 2024 once again confirmed the robustness of our business model and the resilience of Škodians in a challenging environment. Our key tool is the Next Level Efficiency+ programme, which aims to save us a cumulative total of €6.5 bn by 2029. This is about securing our future.
Klaus Zellmer
Chairman of the Board of Management
Škoda Auto a.s.
Thomas Schäfer
Chairman of the Supervisory Board
Škoda Auto a.s.
Thanks to my time at Škoda Auto, which I still look back on fondly, I have a very special connection to this fantastic brand and, of course, to the team.I continue to hold Škoda Auto in high regard for its pragmatism, down-to-earth attitude, and ingenuity – important qualities that really matter right now. In 2024, the pressure on the automotive industry has grown again due to intensifying geopolitical conflicts, weakening demand for e-mobility, and increasing competition.In these challenging times, Škoda Auto has managed to achieve important successes: The new all-electric Elroq is a stunning vehicle and the most competitive BEV in its segment in Europe, achieving price parity with ICE models. In India, where Škoda Auto oversees all the Volkswagen Group’s operations, the brand took another key step in its internationalisation strategy by launching the affordable Kylaq. With new approaches, such as using gamification in communication through the Vision GT project, Škoda has successfully reached a fresh, younger audience. Creating this digital race car inspired by the brand’s real-world motorsports DNA was a leap into the future. On the sustainability front, their “Curiosity Fuel Coffee” initiative connects family farms, local roasters, Škoda Auto plants, offices, and circular economy production – a win-win supply chain that also delivers exceptional taste in every cup. The brand’s drive is also reflected in its commercial and financial performance: Škoda increased its market share to become Europe’s fourth most popular car brand, climbing from seventh in 2023 and tenth in 2022. With a return on sales exceeding eight per cent, Škoda is making a significant contribution to the Brand Group Core’s success.
I am already looking forward to seeing the power of the Brand Group Core hit the road next year – with affordable electric vehicles starting at under €25,000 and many more synergies that we will exploit together with Volkswagen, Škoda, SEAT/CUPRA, and Volkswagen Commercial Vehicles.
Thomas Schäfer
Chairman of the Supervisory Board
Škoda Auto a.s.