Škoda Auto to extend production of Fabia, Kamiq and Scala models until the end of the decade

Published by e15.cz on 26 June 2024

Škoda Auto will extend the production of its Fabia, Kamiq and Scala models until the decade's end. This decision is due to the slower-than-expected transition to electromobility and high global demand. The automaker initially planned to cease production earlier, but the shift to electric vehicles is not progressing as quickly as anticipated. Production of the Kodiaq, Superb and Octavia models will continue beyond 2030, Škoda Auto's CEO Klaus Zellmer said in an interview with Seznam Zprávy.

According to Zellmer, the slower transition to electromobility is affected by factors such as prices, charging infrastructure, consumer sentiment as well as preferences. "Consumers are very price-sensitive. It's crucial to price the model below 20,000 euros (approximately CZK 500,000). However, if you look at the Fabia model, in some European countries, it starts anywhere between 15,000 and 16,000 euros. That's still a 25% difference compared to the cheapest planned electric vehicle," Zellmer told the portal.

Battery electric vehicles are more expensive than conventional cars, primarily due to the cost of raw materials, especially batteries. "Forty per cent of the cost of an electric vehicle is the battery," Zellmer added. The automaker's strategy includes introducing the urban crossover Škoda Epiq next year, priced at around 25,000 euros, or CZK 600,000. "This is a reasonable bargain for a more compact urban SUV. I am convinced this vehicle will be a game-changer," the Škoda Auto CEO said.

Zellmer also mentioned in the interview that he wouldn't bet on the end of the internal combustion engine by 2035, although it remains planned for the company. "What genuinely scares me more than the end of new internal combustion engine car sales in 2035 is what will happen to all the combustion engine cars still in the market. We don't have a solution to reduce their CO2 emissions," Zellmer said. Whether the legislation extends beyond the current 2035 target depends on consumer reactions.

According to EY automotive expert Petr Knap, Škoda Auto is logically responding to the changing market situation. "There has been a noticeable slowdown in the growth of new electric vehicle sales in Europe and elsewhere since last year. Automakers are now generally adjusting their product plans in response to demand. They still need to consider the required average CO2 emissions per registered vehicle to avoid significant fines," Knap said.