Skoda Speeds Ahead with 35% Profit Jump

In a rebound reflecting the stabilization of the supply chain, Skoda Auto, the Czech unit of Volkswagen Group, reported a year-on-year surge of 35% in its first-half operating profit. This significant leap forward is an encouraging sign for the Czech Republic’s biggest exporter, a critical indicator of the country’s economic health.

Klaus Zellmer, Skoda’s Chief Executive, highlighted the company’s tenacious focus on overcoming supply chain hurdles.

“We have remained focused on overcoming supply chain issues and the reward now is being able to keep the production lines rolling,” he stated.

With these issues largely addressed, Zellmer announced that customers can expect substantially shorter delivery times moving forward.

Like all global auto manufacturers, Skoda grappled with supply difficulties in recent years, notably, the semiconductor chip shortage which heavily impacted production.

However, Skoda’s figures for the first half of the year show a promising recovery. The company disclosed a 20% year-on-year increase in customer deliveries, reaching a total of 432,200 vehicles.

Revenues rose by 34.5%, reaching 13.75 billion euros, with an operating profit of 911 million euros. The improvement was largely driven by growth in western and central Europe.

Skoda is also intensifying its focus on electric vehicles (EVs), having seen a robust increase in demand for its all-electric Enyaq iV model. The company also revealed plans to introduce the first of six new EV models next year, underlining its commitment to the green transition.