Skoda balances electric, hybrid, and ICE models for future success

Skoda aims for top 3 in Europe by 2030 with a balanced mix of EV, hybrid, and ICE vehicles, global expansion, CO₂-neutral plants, and AI integration.

Skoda Auto closed 2024 on a high note, reporting over 920,000 vehicle deliveries, securing the 4th spot in European sales, and making significant strides in emerging international markets. But the company isn’t merely celebrating past achievements—it’s charting a course for the future through its updated Next Level Skoda Strategy. Far from a superficial repositioning, this plan signifies a deep realignment of priorities across product development, technology, sustainability, and market presence.

At the heart of Skoda’s approach is a measured transition. Rather than abandoning internal combustion engines, the brand is committing to a diversified portfolio that includes BEVs, hybrids, and efficient ICE models. By 2026, Skoda aims to introduce six electric vehicles, such as the Elroq, Space, and the compact Epiq. The existing Enyaq and Enyaq Coupé will also undergo redesigns and technical updates.

Skoda is simultaneously investing in plug-in hybrid technology. The upcoming Superb Hatch and Combi will feature a hybrid powertrain with an electric-only range exceeding 120 km. These efforts are geared toward expanding customer choice and achieving price parity between BEVs and ICEs within the next few years.

Digital innovation is another cornerstone. AI applications go beyond buzzwords: the voice assistant Laura now integrates ChatGPT, and the Sound Analyser tool uses machine learning to detect mechanical issues. This technological direction is supported by the company’s in-house AI Competence Centre, active since 2018.

Environmental goals are equally ambitious. The Vrchlabí plant is already CO₂-neutral, and the Mladá Boleslav and Kvasiny sites are on track to achieve the same by 2030. In India, Skoda targets CO₂-neutral operations as early as 2025. Solar energy, renewables, and circular economy principles are key pillars of this effort.

On the international front, Skoda is doubling down on Southeast Asia. Its new assembly plant in Vietnam builds models like the Kushaq and Slavia, and since 2025, the Kylaq compact SUV. The latter has become a sales phenomenon—in April 2025 alone, more than 5,300 Kylaqs were sold in India, outperforming the Slavia fivefold.

Financial sustainability is being reinforced through the Next Level Efficiency+ program, targeting €6.5 billion in savings by 2029. Skoda is also pursuing a 10% return on sales, to be achieved through cost reductions, battery price trends, and a planned 15% reduction in non-production roles by 2028, without affecting factory floor staff.

Skoda’s strategic mix of smart technology, sustainability, and customer-centric development offers more than just survival in a transforming industry—it lays a foundation for leadership. While climbing into Europe’s top three brands remains a challenge, the company’s momentum is undeniable.