Skoda stepping out of VW's shadow

The all-new Skoda Octavia, which is expected to hit the China market in May, will help Skoda establish its brand among Chinese customers. Provided to China Daily

Looks to independent sales network and stronger image

Skoda Auto expects to move out of parent company Volkswagen's shadow and compete as an independent brand in the Chinese auto market, said its chairman Winfried Vahland.

The Czech brand's global sales in the first quarter rose 25 percent year-on-year to a record 250,000 vehicles.

"The growth indicates that we should be able to have a more independent position at Shanghai Volkswagen," said Vahland.

He made the remarks as Skoda unveiled the new Octavia on April 20 at the Beijing auto show.

"We need a more independent, more powerful image to boost our popularity in the Chinese market. And Shanghai Volkswagen agrees on that," said Vahland.

He said Skoda will has new technical representative on the Shanghai-Volkswagen's board of directors beginning in May, adding that another two already represent the brand in sales and marketing.

"Instead of a 'little brother' of Volkswagen, we are an independent automaker with a history of 120 years."

He said Skoda will have an independent sales company when its annual sales in China reaches 500,000 units, a target the brand expects to achieve in 2018.

China is now the Skoda's largest market worldwide. A total of 227,000 vehicles were sold across the country in 2013.

He said he is satisfied with the brand's performance.

"We now have a 1.7 percent market share, which indicates that we are on the right track. Many experts estimate that the Chinese auto market will grow by around 10 percent. I hope our growth will not be lower than that."

His confidence is partly due to the new Octavia that proved a success in international markets since its global premiere in 2013.

"We are confident that the new Octavia will be popular in China now that it has helped drive up our sales in Europe by 42 percent in the first quarter this year," said Vahland.

The third-generation Octavia has the largest space, lightest weight, best safety performance, greatest practicality, greatest comfort and most eco-friendly performance of any Octavia ever produced, according to the company.

"The Octavia is the heart of our brand, which embodies the outstanding achievements of Skoda and made it the successful company it is today," said Vahland in an earlier interview with China Daily.

Since it was first produced in 1996, some 4.14 million Octavias have been delivered to customers around the globe, making it the most popular Skoda model.

The Octavia is also the brand's best-selling model in China. More than 680,000 units have been sold since its entry into the market in 2007.

More new models

The new Octavia's premiere in China came two days after the Rapid Spaceback was unveiled in the world's largest auto market.

The Rapid Spaceback is part of the brand's strategy to adjust its low-profile image, said Vahland.

"We're rolling out such models to attract younger customers as we are making the brand more dynamic and passionate."

Skoda will also introduce the new Superb and the new Fabia into the Chinese market in 2015, he said.

The automaker is also considering rolling out a larger SUV than its Yeti to meet the Chinese customers' growing demand for SUVs."It is a clear trend and we will swim with the tide. In the long term we will offer two to three SUV models in the Chinese market," said Vahland.

In new-energy vehicles, hybrids are the major focus for Skoda models, he said in an interview with China Daily earlier this year. "Development of electrics in China has not achieved what the industry expected several years before. A plug-in hybrid is a feasible solution at present."

He said Skoda is strengthening its efforts in meeting Chinese consumer requirements throughout the development of new-energy vehicles."We will continue to bring Chinese consumers products with globally leading technologies and excellent Skoda quality.

"And in the future, the speed of product offering in China will further catch up with the timeline in Europe," he said.