AAA weekly
2019-10-21
Copyright FOURIN, Inc. 2024
Škoda Auto Shifts Focus to Mobility Services, Digital Solutions
VW Group's Škoda Auto has entered more than 100 markets, with a focus on Europe and China, passenger car sales volume reaching 1.25 million units in 2018. In anticipation of the future transformation of automakers from vehicle manufacturers to mobility service providers, Škoda Auto plans to invest a total of 2 billion EUR in the next five years from 2019 in technology and service development, and the construction of new business models in the areas of e-mobility and connected / mobility services.
Škoda Auto: Overview of Management / Technology Strategy
Area / Overview | Details / Trends |
---|---|
Investment in strategic areas | From 2019 to 2023, the company plans to invest 2 billion euros in BEV / E-mobility solutions, connected / digital services and mobility services. Based on sales and service of ICEVs, improvement of ICE technology (including CNG) and hybrid technology (PHEV, MHEV), the company will add new technologies, business models and promote business transformation. |
Strategy 2025 | Aiming to increase sales and profits and cultivate new businesses to achieve a target of ROS of seven percent or higher in 2025: SUV lineup expansion, promotion of E-mobility, global expansion, promotion of digitalization. |
Expansion of SUV lineup | Previously only the old PQ35 platform-based Yeti 1 model was introduced, but from 2017 to 2019 three models are scheduled to be launched, the MQB-based small, compact and medium models. The Karoq model (compact, based on MQB A1, successor of the Yeti) was introduced at the end of 2017, and the Kodiaq (based on MQB A2, sister model of Tiguan LWB) was launched in March 2017. The Kamiq (subcompact, based on MQB A0) was released in June 2018, and the Kodiaq GT (high performance specification) was introduced in October 2018 in China. In 2019, the Kodiaq RS (high performance specification) and the Kamiq are scheduled to be introduced in Europe, and the Kamiq GT (China version) in China. |
Electric vehicles | From 2019, the company plans to launch multiple MQB-based PHEVs and MEB-based BEVs. Production of Citigo’s BEV (shares system with the e-up) and Superb PHEV (shares system with the Passat GTE) started in 2019. In 2020, a MEB-based SUV BEV (Vision E / iV concept-based) will be launched. The company plans to commercialize a 48V MHEV (based on Vision X) CNG engine. Škoda Auto plans to launch 10 EVs in 2022 (including PHEV and MHEV) and another 10 EV models in 2025 (6 BEV models, 4 PHEV models). EV sales ratio is expected to reach 25 percent in 2025. The EV model name “iV” is adopted as a sub-brand. |
Connected / digitalized | Škoda Auto is introducing next-generation connected infotainment system (new models to be equipped from 2019 and EVs from 2020). The company provides support for next-generation communication (after 2019) and OTA software update function (after 2020). Functions include fleet management services, data business, smart subscription, revenue share, location-based service proposals among others. The company promotes the use of Industry 4.0 solutions in manufacturing and logistics. |
Mobility solutions | Škoda Auto is aiming to develop new services and establish a business model through collaboration between Škoda Auto DigiLab (headquartered in Prague with offices in Tel Aviv and Beijing) and external IT experts and startups. The automaker is shifting from vehicle manufacturing to mobility service provider, services including vehicle sharing, ride sharing, multimodal mobility app and safety / autonomous driving support technology among others. |
Utilizing modular architecture | The ratio of MQB-based models: 40 percent in 2015, 65 percent in 2018, 70 percent in 2020 and up to 80 percent in 2025. The company plans to deploy the production of models with the same architecture at each factory. The MEB platform is also actively used. |
Global expansion | The company’s policy is to double business in China while securing profits. Škoda Auto controls operations in India and Russia within the VW Group. In India, the company leads the India 2.0 project aimed at launching MQB A0-based strategic vehicles and strengthening local R&D. |
Škoda Auto uses high-performance powertrain technology of the VW Group. While excelling in quality and durability, the Škoda brand maintains its advantage of lower prices compared to the VW brand. Škoda Auto is focusing on developing solutions for connected services that lead to added value while aiming for improved competitiveness. The company also actively engages in MaaS (Mobility as a Service) schemes including BEV sharing, ride sharing, optimal route finder apps, transportation search, boarding and payment. Škoda Auto’s subsidiary Škoda Auto DigiLab is developing mobility solutions and services through collaboration external IT experts and startups. The company is headquartered in Prague with additional offices in Tel Aviv and Beijing. Škoda Auto is also responsible for sharing results in the areas of connected and mobility services.
In the electric vehicle sector, the company plans to commercialize a MEB-based BEV in addition to the mass production of a MQB-based PHEV. The company intends to provide new mobility services while making full use of VW's technological capabilities and responding to stricter CO2 regulations. Škoda Auto also attaches importance to internal combustion engine technology and is making efforts to develop CNG-related technologies such as improving the performance of CNG engines and using CNG-compatible TSI and hybrid technologies.