Strategy 2025

Smart ideas push us forward

The long-term targets of Strategy 2025 are still relevant despite the corona crisis

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KODA AUTO’s priorities as formulated in its strategic programme remain valid even after the crisis caused by the coronavirus. Thus, the Strategy 2025 targets still include an increase in car sales, as well as an expansion of the portfolio with digital business models and mobility services. Specific priorities are demonstrated by the strategy’s logo, the crystalline arrow pointing forward. The link with the tradition of Czech crystal is also a reference to the significant 125 years of the car company, and in this decade it is seeking enthusiastic customers, advanced products, an excellent team and substantial profitability, as well as sustainability and integrity. The carmaker’s direction is summed up in the long-term vision: “ŠKODA – a Simply Clever company for the best mobility solutions.” The basic principles are captured in our company’s mission: “Inventiveness drives us forward.”

A common future

Thomas Schäfer, the new Chairman of the Board, has a clear idea of the Czech carmaker’s position. “In recent years, ŠKODA has been developing in all areas and today is considered a prosperous and popular brand. I am convinced that together we can build an even more successful future”, Schäfer says.

Greater speed and determination

Just like ŠKODA, the entire VW Group has responded to dynamic changes and updated its TOGETHER 2025+ strategy. The main elements include the introduction of new strategic modules and an updated vision: “Shaping mobility – for generations to come.” It represents even faster progress on the previously set path, as well as higher concentration and consistency with greater determination to a change. In the case of the Group strategy, ŠKODA AUTO helps with the preparation of specific measures and their implementation. There is conformity between the principles of the VW Group’s strategy and that of the Czech carmaker.

Future issues of ŠKODA Mobil will provide information on the current state of selected areas and what awaits the car company in this regard. ed

Strategy 2025 – targets reached

The inter-area initiatives of ŠKODA AUTO, which form the backbone of the strategy implementation programme. 

Brand’s strategy

It concentrates on ŠKODA’s values: humane, unexpected, facilitating. These are consistently applied by the carmaker in all communication campaigns to further strengthen our customers’ loyalty.

Product strategy

It represents the continuous product offensive that includes the launch of eight new models and derivatives since 2016. It emphasises the strong focus on SUVs (KAROQ and KAMIQ), as well as the introduction of the first electric vehicles: the CITIGOe iV and the SUPERB iV plug-in hybrid. This year’s main event is the debut of the fully electric ENYAQ iV (see picture).

Digital transformation

The carmaker's digitisation efforts have resulted in the creation of ŠKODA AUTO DigiLab, which is currently working on 16 active pilot projects. The specialisation in services and connectivity has led to the introduction of the voice assistant, Laura, and the further development of ŠKODA Connect services. 

Flexibility and scalability

Owing to increasing production capacity (e.g. the construction of the new Paint Shop in Mladá Boleslav), continuous modernisation of production systems and the world market offensive, the carmaker has achieved record deliveries to its customers (2018 and 2019). The car company has shown itself worthy of being tasked with responsibility for India thanks to its successful regional and sales policy.

Culture and organisation aim for performance

ŠKODA AUTO is undoubtedly one of the best employers in Central Europe. It is developing its open and innovative corporate culture even further. For example, it has set up a central innovation team that facilitates the implementation of new working methods and projects in all areas.

Environment

By promoting sustainable development, the impact of production on the environment has so far been reduced by over 48 percent as compared with 2010. ŠKODA AUTO has also committed to reducing its carbon footprint by a third by 2025.  

ŠKODA Space and its info page on Strategy 2025, where you can also complete an e-training course.

No time to relax

The pandemic affected all ŠKODA markets, but the implementation of the strategic development plan continues in these regions

India

Emphasis on cooperation

In 2018, the VW Group entrusted ŠKODA AUTO with the entire Indian market. Despite the problems related to the coronavirus pandemic, the goal is still to have a market share of 5 percent by 2025. To this end, the activities of individual brands need to be properly coordinated, which is why they are working together on a sustainable Group Strategy 2030 for India. They will focus on Indian trends, opportunities and specifics to reflect the individual brands’ activities while transforming them into strategic targets and initiatives. The corporate strategies and activities to achieve these goals are now being defined in workshops attended by representatives from all the brands.     

CHINA

Digital future

Three million ŠKODA cars have already rolled off the assembly line in China (more on page 3). To increase its success in the decade ahead, the carmaker has been developing and executing a comprehensive long-term business strategy together with its partner SAIC Volkswagen. ŠKODA is also driving digital transformation at full speed, especially via the recently established ŠKODA AUTO DigiLab China. In this way, the Czech brand expects to remain a major mobility provider for its Chinese customers in the future. 

Russia and new markets

Further opportunities

Last year, the ŠKODA brand hit another record high on the Russian market, reaching a market share of 5.4 percent thanks to the delivery of 88,600 vehicles. In line with its 2025 Strategy, the carmaker intends to expand the range of markets to which it supplies its cars, which currently includes Kazakhstan, Belarus, Azerbaijan, Armenia and Tajikistan. In the upcoming years, it intends to enter the markets of Uzbekistan, Mongolia and Kyrgyzstan as well. The brand is also deepening its position in Southeast Asia: It has new importers in Brunei and Singapore and is preparing to enter the market in Sri Lanka.