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VW's Skoda aims for 2021 rebound, plans electric car investments

2021-03-24
IMG

Part of the Volkswagen Group, Czech carmaker Skoda Auto, announced on Wednesday that it would invest around 2.5 billion euros over the upcoming five years on future technologies, with more than half going to electric vehicle investment.

The Czech Republic’s biggest exporter is expecting a rebound in 2021 from a global car sales fall but it encounters variability over the pandemic and a semiconductor shortage rattling the industry.

Finance director Klaus-Dieter Schuermann stated that this year was most probably to be another big challenge, they had assumed Skoda Auto’s group performance to be improved, with sales revenue above the level of last year.

Skoda had stated that on Wednesday a 54.5% fall in 2020 operating to 756 million euros ($894 million). Sales revenue had ramped down 13.8% to 17.1 billion euros.

Global deliveries stayed more than 1 million cars for a seventh straight year despite a 19% drop after production outages at the outset of the pandemic and a drop in China, its biggest single market.

Chief Executive Thomas Shaefer announced that the car company was managing the semiconductor shortage “but it will follow us for a while” and the effect was not yet faced.

Skoda’s core market in Europe would turn out to be electric in the future, Shaefer stated, although it was still not the right time to switch completely away from traditional models, which comprise the launch last year of a new generation of its flagship Octavia model. It has also initiated its production of the all-electric Enyaq iV model.

Skoda organized investments of 1.4 billion euros into electromobility development along with its five-year investment plan. Investments will also go into digitalization activities and plant modernization.

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