Skoda Africa sales growth at 30% for 2017

Following a slow year in 2016, Skoda Africa sales continue to be positive through 2017 with the aim of ending a year with marked double digit growth (34%).

Skoda Auto Africa ends 2017 with 17,438 cars sold, up 30% from CY 2016. (2016). Skoda Rapid sales volume provides the biggest boost to overall sales. Introduction of Skoda Kodiaq, Octavia, and Octavia RS strengthen brand appeal.

Commenting on the strong business performance, Mr. Ashutosh Dixit, Director – Marketing, Sales and Services, ŠKODA AUTO Africa said, “We have concluded the year well and are very happy with our performance in 2017. This 30% growth underscores the fact that we are optimally positioned with our current model range in Africa; the improved business performance reflects a well devised strategy that is in moving in the right direction for us. With the ŠKODA KODIAQ, we successfully launched a true game changer in October last year. The large SUV already represents an important pillar of ŠKODA’s development in Africa. We are very optimistic with our SUV strategy for Africa. Skoda Auto Africa will continue to push ahead with its model offensive campaign in 2018.

Skoda Africa deliveries increased a whopping 43% in November up at 1,400 units from 1,000 sold in November 2016. For October sales were up at 7.7% with 1,600 cars delivered, up from 1,500 units sold in October 2016. Sales increase for September 2017 stood at 37% at 1,600 units up from 1100 units delivered in September 2016.

For Sept, Oct, and Nov, Skoda Africa sales stand at 4600 units up from 3,600 units for the same three months last year up 22%. For the year 2017 (Jan – Nov), Skoda sales are reported at 15,400 units, up from 12,000 units sold through January – November 2016.

For the year thus far, Skoda Africa growth stands at 28.33%. At the end of Q3 2017, Skoda Africa announced sales growth of 29% for the year. By our calculation that number stood at 30.5%. For 2017, Skoda Africa has set a sales target of 34% growth and that would imply sales of 2500 units in December 2017.

Helping Skoda Africa achieve new heights in sales, are their new launches like the Rapid, Octavia, Superb and the might Kodiaq. All these cars of theirs have found good response in the market. This in spite of passenger vehicle sales having been at stake in recent times owing to constant policy change related to GST, and cess requirement.

Earlier this year Tata Motors and Skoda call off their proposed partnership. Skoda is still up for such opportunities with other entities. The focus is to build low cost cars ( entry level car platform) in a cost effective manner for a price sensitive market like Africa, and this requires an increased level of localisation. Volkswagen’s MQB A0 platform continues to be explored for the same project. Proposed changes in the African auto industry mandates stricter engine emission, and crash-test norms by April 2020.