Skoda looks to double up its share of the Chinese market

Skoda Auto, one of the classic brands of German automobile giant Volkswagen AG, aims to grasp a larger share of the Chinese market, backed by the automaker's "Simply Clever" solutions.

"At present, Skoda accounts for 1.6 to 1.7 percent of the Chinese automobile market, which is not enough. Our goal is to double that," said Bernhard Maier, CEO of Skoda Auto on Nov 5 in Shanghai, where he was attending the first China International Import Expo.

The automaker unveiled its new SUV model - Kodiaq GT - at the expo, demonstrating Skoda's confidence and ambition in the Chinese SUV market, according to Maier.

"The Kodiaq GT continues to offer what we stand for with our 'Simply Clever' solutions - functionality and good cost performance," said Michael Arndt, executive director of Skoda's marketing and sales business at SAIC Volkswagen.

Arndt said that with superiorities in design, technology and digitalization, the Kodiaq GT completes the automaker's product portfolio, especially in the A-class SUV segment.

When asked if Skoda will alter its strategy for the Chinese market due to the slowing growth in demand for SUVs, Maier replied that Skoda has confidence in the Chinese market and will stick to its plan to launch more SUV models for the Chinese market in the future.

"Thanks to the SUV strategy and the new models that we have launched, we are one of the fastest-growing joint venture brands in China," Arndt said.

From January to October this year, the sales volume of Skoda in China has increased by more than 12 percent year-on-year, he added.

About one-third of Skoda's sales volume in China this year will come from its SUVs, according to Arndt.

To drive growth in the Chinese market, Skoda is carrying out an investment valued at 15 billion yuan ($2.16 billion) in the country, according to Maier.

This is being used to amplify the automaker's dealer network, build up its product portfolio and improve its brand influence, Arndt added.

The Chinese athlete Su Bingtian, who holds the record in Asia for the men's 60-meter race is brand ambassador for the Skoda SUV family, and the automaker expects his familiarity among Chinese customers to improve brand recognition.

Sponsoring the Tour de France for 15 consecutive years and cooperating with Dragon TV to shoot a documentary titled as Beautiful Roads for a Better Life, have also helped the automaker build and promote the brand.

"As for our development in the Chinese market, we believe that the growth potential centers on the third- to fifth-tier Chinese cities. We will pay close attention to these cities when distributing our retailing network," said Arndt. Skoda is also enhancing its research and development for electrification technologies and electric models.

The automaker is scheduled to launch 10 electric models by 2025, some of which will come to the Chinese market, according to Maier.