Operating profit of the Czech company Škoda Auto fell by 42% to €628 million last year. This was announced by the largest Czech car manufacturer in the German Volkswagen Group on Tuesday, March 14. Škoda’s economic performance last year was negatively impacted by the hostilities in Ukraine, higher production costs and unfavorable foreign exchange movements.
At the same time, Škoda Auto’s revenue rose by 18.5% last year to €21 billion.
The Czech automaker has already announced that it delivered 731,300 passenger cars to its customers last year, down 16.7% year-on-year. The reasons for this were the ongoing shortage of chips, the crisis in Ukraine, problems in the supply chain, rising energy and commodity prices, as well as uncertainty in the global automotive markets.
Škoda Auto employs 45,000 people worldwide. Škoda currently offers over ten models including Fabia, Rapid, Scala, Octavia, Superb, Kamiq, Karoq, Kodiaq, EnyaqiV, Enyaq Coupe iV, Slavia and Kushaq.
In addition to the Czech Republic, Škoda has major assembly plants in China, Slovakia and India. Currently, Škoda Auto is represented in the markets of regarding 100 countries around the world. It was recently announced in Mladá Boleslav that Czech passenger cars will also appear on the Vietnamese market this year.
Škoda was previously also present in Russia, but the Volkswagen concern announced that due to the SVO in Ukraine, the work of two assembly plants in Russia would be stopped for an indefinite period, as well as the export of the concern’s cars to Russia. For Škoda Auto in 2021, the Russian market was the second largest. It is clear that the decline in the company’s profits is partly due to the abandonment of the Russian market.
