“Despite the many geopolitical and macroeconomic challenges, it’s clear that Škoda Auto is crisis-proof. We expect the supply of semiconductors to further improve over the coming weeks and months. At the end of August, we’ll be presenting to the world our new brand identity that will reposition ŠKODA for the decade of transformation,” said Klaus Zellmer, CEO, Škoda Auto.
The revenue of the Škoda Auto Group increased slightly by 0.2% to EUR 10.2 billion due to consolidation. Because OOO Volkswagen Group Rus has been consolidated under Škoda Auto a.s. since the beginning of the year, the figures cannot be directly compared to the same period last year.
The return on sales remained at a solid level of 6.6% (9.6% in the same period last year), with operating profit falling 30.6% to EUR 676 million, the automaker added.
The challenges the automaker faced at the beginning of the year intensified in the second quarter. “We were able to maintain the robust return on sales of 6.6%, in the second quarter. We are therefore consistently pursuing our NEXT LEVEL EFFICIENCY+ cost and efficiency programme,” added Christian Schenk, Board Member for Finance and IT, Škoda Auto.
In the first six months of the year, the Czech car manufacturer delivered 360,600 vehicles to customers worldwide. This represents a decrease of 30.0% compared to the same period last year (January to June 2021: 515,300).
In Western Europe, deliveries from January to June dropped 24.1% to 180,500 vehicles (2021: 237,900 vehicles). In Germany, the company’s single largest market in the world, deliveries to customers were down 16.4% year-on-year to 63,500 vehicles (first half 2021: 75,900 vehicles).
In Central Europe, Škoda Auto recorded 69,800 deliveries to customers in the first half of 2022 compared to 97,400 from January to June 2021 (-28.4%). In the Czech domestic market, there were 35,500 deliveries to customers in the same period, 19.4% fewer than in the same time frame last year (first half of 2021: 44,000).
In Eastern Europe excluding Russia, the car manufacturer delivered 15,200 vehicles to customers (January to June 2021: 21,700, -30.1%)
“In Russia, our second most important market, we suspended vehicle production at our Kaluga and Nizhny Novgorod plants until further notice and halted all exports to the country. In addition, a fire at one of our suppliers forced us to stop production of our best-selling OCTAVIA at certain points over the last few months. However, we have now resumed production at full capacity,” said Martin Jahn, Board Member for Sales and Marketing, Škoda Auto.
Halting shipments has had a significant impact in Russia, where the carmaker has not delivered any vehicles to customers since 3 March. Between January and June, Škoda Auto recorded a total of 14,600 vehicles delivered (first half of 2021: 52,800, -72.3%)
Škoda Auto posted strong growth in India, delivering 25,900 vehicles from January to June 2022 – an increase of 428.7% compared to the previous year (first half of 2021: 4,900 vehicles).
In Turkey, the company delivered 9,800 vehicles (January to June 2021: 17,600, -44.4%)
In China, deliveries to customers in the first half of 2022 fell 43.9% to 24,700 units (the same period in 2021: 44,000).
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At 16.5%, the operating margin was well above the previous year and above the strategic target corridor of 9 to 11%. Earnings were driven by the good price position, the solid operating performance of the Lamborghini and Bentley luxury brands, and support from raw material hedging, the company said.
Group revenue rose by 7% to EUR 36.4 billion and adjusted EBIT increased by 8% to EUR 4.9 billion as the company’s focus on Top-End Luxury vehicles, battery electric vehicles (BEV) and premium vans as well as a relentless focus on costs, helped to offset lower sales and higher raw material costs.
