In 2025, Škoda Auto continued to deliver on its Next Level Škoda Strategy, which responds to emerging external challenges, the strategy in place for the high-volume brands within the Volkswagen Group’s Brand Group Core, and the overarching Group Strategy. A central element of the Next Level Škoda Strategy is the commitment to combine innovation, responsibility, and long-term growth. Its effectiveness is reflected in record financial results, the rising appeal of the Škoda brand, and the Company’s continued leadership positions across key markets.
The Company’s strategic direction is built on three pillars: Brand and Market, Product and Customer, and People and Company. These pillars have ensured a strong market share in EU, and delivered new electrified and fully electric vehicles into the Škoda portfolio, along with innovations in design and digitalisation. In 2025, Škoda secured its position as the third best-selling automotive brand in Europe, consolidated its presence in India and overseas and made further progress in its sustainability and community initiatives.
People and Company
The third pillar, People and Company, brings together objectives centred on the High Performance Organisation concept, the advancement of employees’ digital capabilities and agile mindset, the delivery of smart sustainability, and the rollout of the Next Level Efficiency+ programme.
High Performance Organisation 2.0
From 2025, the Company is advancing its efficiency and agility through the High Performance Organisation 2.0 programme. The aim is to create a fast, flexible, and sustainably robust organisation that can respond to shifting market conditions while delivering continuous performance improvement. HPO 2.0 leverages digitalisation, automation, and artificial intelligence to simplify structures and speed up decision-making. Its end-to-end (E2E) approach increases process transparency, strengthens cross-functional collaboration, and systematically removes traditional organisational silos.
Škoda Auto also invests heavily in enhancing its employees’ digital skillset and agile mindset. In 2025, it launched Skill Management, an initiative designed to bring together knowledge across four strategic skill areas: working with Microsoft 365, working with data, using artificial-intelligence (AI) tools, and agile thinking.
In alignment with these initiatives and to support its ongoing development, the Company conducts an annual assessment of its corporate culture using the Cultural Mindset Index (CMX).
Smart Sustainability
The Company’s sustainability ambition is to deliver on all ESG priorities through measures that are fully compliant, effective in execution, and focused on creating value. Škoda Auto continues to advance the reuse of resources through sustainable solutions, places a sustained emphasis on developing and supporting its people, and aspires to set the standard in ethical conduct. At the same time, it proactively and pragmatically strengthens local communities and systematically enhances its resilience.
Top 10 ESG Excellence
Next Level Efficiency+
Under the Next Level Efficiency+ programme, the Company is working to secure sustainable financial results, setting ambitious goals for its return on sales and net cash flow. Targeted measures are reducing costs in production, development, sales, and management, delivering substantial, steady savings across the business and streamlining processes. This, in turn, releases the resources needed for investment, underpinning the Company’s ongoing transformation and future prosperity.