Another automaker stands out weakened by the current crises: Skoda. The Volkswagen Group brand, which was previously limited to Europe, began its activities in the early 2000s international expansion into new markets. At the same time, it entered the elite market and began to offer models different from the Volkswagens of the time. Thus, in 2021, the brand sold its models in Russia, China, Turkey, India and Israel. But 2022 was a difficult year for the first two major markets outside of Europe: Russia and China. First, weakened by the war in Ukraine, was marked by a boycott of Western countries and the departure of several car manufacturers.

Loss of Russia and China

This applies to the Czech brand, which was sold in 2021 There are 90,443 cars in the country. Its second market after Germany and its 136,781 units! The group is also presented under brands volkswagen, Audi, Bentley and Lamborghini also had two production centers in Russia, Nizhny Novgorod and Kaluga. The first produced more than 47,000 Skoda carsand the second 40,000. A deficit for the brand whose local subsidiary was liquidated in March 2022. Another continent, another country, another crisis: China. A country that was once largely dominated by foreign brands has recently experienced a resurgence Volkswagen loses its leading position to BYD. An insult to the band that was number one in the country for 39 years! This domestic competition from Chinese manufacturers is weakening the Volkswagen brand in the Middle Kingdom.

India, not China

In order not to destroy the sales of the subsidiary brand, Therefore, Skoda may dissolve its joint venture with SAIC. Which offered the same European range as well as its own model: the Kodiaq GT, SUV coupe. Tensions between the West and China are also weakening the business of foreign manufacturers. Thus, Skoda can reorient its activities to Vietnam, where it already plans to build a plant by 2023. Much more stable than China politically, India is also the new El Dorado of the car. the second world market. Although historically dominated by Maruti-Suzuki (over 44% of the market!), it is the gateway for many brands to developing countries. Citroën is there with Jeep for the Stellantis group, which is thinking of collecting models for Europe there.

Leaving China for India, Skoda would give up more than 70,000 units (2021 figures) versus 23,000 for India. A significant gap, but one that could be narrowed if the brand increases its investments in the country and implements its development strategy. Unknown to us, she, in particular, produces Kushaq crossover and a sedan Slavia (4-door Fabia).