Skoda Reports 12% Profit Growth Driven by Electric Vehicle Sales

Recently, Skoda Auto, a subsidiary of the Volkswagen Group, announced that its operating profit increased by nearly 12% year-on-year to 1.3 billion euros (approximately 1.52 billion USD) in the first half of this year, thanks to a higher proportion of electric vehicles in total sales. During the same period, Skoda's revenue grew nearly 12% year-on-year to 15.1 billion euros, with deliveries rising 14% to 509,400 units. The company noted that about 23% of its sales consisted of pure electric vehicles or plug-in hybrid models, a significant increase from 9.4% in the first half of last year. In the European market, Skoda delivered 409,100 vehicles, marking a nearly 11% increase, outperforming the overall market due to the sale of 72,000 electric vehicles and 21,400 plug-in hybrids. Additionally, Skoda achieved impressive results in the Indian market, with deliveries reaching 33,000 units, a substantial growth of 108% year-on-year. Skoda's CEO, Klaus Zellmer, mentioned that as of the end of June, consumer orders for Skoda's pure electric models, Enyaq and Elroq, exceeded 120,000, highlighting progress in its electrification strategy. In contrast, many European automakers are facing billions of euros in losses due to competition from Chinese car manufacturers, U.S. import tariffs, and regulatory pressures to accelerate the transition to electric vehicles, prompting profit warnings. Zellmer stated during a video conference that "Skoda's sales performance is good compared to the overall market." Despite a downturn in the European car market this year, the electric vehicle segment is rising, and electric vehicles remain a strategic focus for companies like Skoda. Zellmer expressed high hopes for the new electric SUV model, Epiq, which is priced at 25,000 euros and aimed at entry-level electric vehicle consumers, with plans to launch in the first half of 2026. He remarked, "We have great expectations for this car, we can even say we are eagerly looking forward to it. We need to further increase the sales proportion of our electrified models."