Slump in Russia to affect Skoda sales goal of 1.5 million vehicles in 2018

Article by Christian A., on November 30, 2014

Skoda is targeting to sell 1.5 million vehicles in 2018 – a goal that has become more difficult to achieve as the carmaker continues to experience a slump in sales in crisis-hit Russia.

The auto industry in Russia is taking some hits from the current Russia-Ukraine row, trade sanctions and weakening currency – leading carmakers to delay or decrease their investment in the country.

Combine that with the brand’s continued dive in India, the 2018 sales target has become harder to hit. Skoda’s midterm plan anticipate a Russian market of 3 million vehicle sales, 4 percent of which Skoda expects to account for.

Werner Eichhorn, Skoda board member for sales and marketing, told Automotive News Europe, said they expect the Russian auto market to shrink to around 2 million units this year, which means sales of just over 80,000 vehicles.

To that effect, Eichhorn said Skoda is now reevaluating all its investments and processes in Russia. According to Skoda, budget changes may affect future production of the Yeti in Nizhny Novgorod, where the SUV is being built under license.

The Czech carmaker has already stopped producing the Fabia subcompact in Kaluga to pave way for the new generation.

Carmakers are seeing a significant opportunity in the Russian auto markets as the country has over 140 million consumers and boasts of rapid middle-class development.

Experts believe that Russia will soon become the largest auto market in Europe, surpassing Germany in terms of vehicle sales.

Topics: skoda, russia, sales

If you liked the article, share on:

Comments

Recommended

The wait for the Mustang’s GT-based Super Snake concept to be released is finally over. Shelby had recently collaborated with Ford Performance and Borla to come up with something that...
by - May 23, 2017
While the BMW M3 is making some noise in Abu Dhabi with its San Marino Blue outfit, Porsche on the other hand, is catching people’s attention in Dubai as the...
by - May 23, 2017
We first heard of the fifth generation SEAT Ibiza earlier this year, and last week, the company finally revealed the all-new Ibiza at the international launch in Barcelona. The new...
by - May 22, 2017
The aftermath of the Takata airbag recall still largely resounds in the automotive industry, as big automotive companies like BMW, Mazda, Subaru and Toyota were extensively hit with what is...
by - May 22, 2017
Amid reports that major rival Volkswagen would cease producing 2016 and 2017 model year diesel cars following the wake of the "Dieselgate" scandal, it’s believed that Chevrolet sees its opportunity...
by - May 22, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries