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Škoda's EV strategy: SSP platform and market diversification

© A. Krivonosov
Škoda is expanding its electric vehicle lineup using the SSP platform, with production sites in Europe and a focus on markets like India. Learn about their flexible strategy.
Michael Powers, Editor

Škoda is continuing to expand its electric vehicle lineup and is selecting manufacturing sites for its upcoming models based on the SSP platform. Spain, Germany, the Czech Republic, and Portugal are among the potential locations, though a final decision has yet to be made.

The SSP platform will be central to the Volkswagen Group's strategy, forming the foundation for most of its EVs in the coming years. Škoda is already strengthening its presence in Spain, where production of the compact Epiq electric car will begin as part of a broader initiative to build affordable vehicles. However, the company remains cautious about the European market's outlook.

Management forecasts suggest sales in the region have plateaued at around 12 to 13 million cars per year. This reality is pushing Škoda to focus more on international markets, particularly India, where sales have already doubled. In the future, India could serve not only as a sales market but also as an export hub.

Despite its EV development, Škoda acknowledges challenges: electric models remain less profitable than internal combustion engine vehicles, and strict EU environmental regulations are increasing pressure on manufacturers. As a result, the company has scaled back its plans for new electric cars from six to four models while continuing to invest in traditional vehicles, including a successor to the Karoq. This reflects a more flexible brand strategy, where balancing electrification with maintaining ICE offerings could be crucial for success in the coming years.

Škoda is taking a pragmatic approach, opting for a flexible strategy with market diversification rather than a rapid shift to full electrification. Against this backdrop, this model may prove more resilient amid uncertainty in Europe.