Skoda is navigating a century-plus legacy while aggressively expanding into new markets, becoming Europe’s third-best-selling car brand in just two years. CEO Klaus Zellmer, appointed in 2022, attributes this success to a blend of honoring the company’s rich history and focusing on high-growth regions like India and Southeast Asia.
The Weight of 130 Years
Skoda ranks among the oldest car brands globally, trailing only Peugeot and Daimler-Benz in longevity. Zellmer emphasizes that this heritage isn’t just historical curiosity; it’s a core obligation for the current management. The company’s past isn’t limited to conventional cars, having experimented with everything from pick-up trucks to convertibles and air-cooled engines. Zellmer notes that the company’s archives reveal that there’s little Skoda hasn’t done.
Adapting to a Changing Market
The company’s recent success comes despite significant market disruptions. The loss of the Russian market, formerly a major revenue source, forced Skoda to reorient its strategy. Rather than doubling down on China, the company has prioritized India and the ASEAN region (Association of Southeast Asian Nations) as key growth areas. This shift reflects a broader trend among automakers to diversify away from over-reliant markets.
From 10th to Third in Europe
Zellmer’s leadership has overseen a rapid ascent in European market share. The company moved from 10th place to third in just two years. This growth is notable in a highly competitive landscape where established brands struggle to maintain momentum.
Heritage as a Competitive Advantage
Skoda’s long history isn’t merely a branding exercise. Zellmer believes it’s a fundamental asset. The company’s willingness to experiment with diverse vehicle types in the past provides a deep reservoir of technical knowledge and design inspiration.
The Future: India and ASEAN
The company’s strategic shift toward India and ASEAN reflects a calculated bet on emerging markets. Both regions offer high growth potential and less competition from established Western brands. This focus signals a long-term commitment to diversification and resilience.
Skoda’s formula for success is a pragmatic blend of honoring its past, adapting to market shifts, and aggressively pursuing growth in emerging regions. The company’s recent performance suggests that this approach is working, positioning it as a formidable competitor in the global automotive industry
