VW's Skoda Reports 12% H1 Profit Increase as Electric Sales Gain Momentum
Skoda Auto, the Czech automaker and Volkswagen Group's dominant subsidiary, posted a sharp increase in profitability during the first half of 2025 on the back of a strong drive for electric vehicles. The carmaker said on Monday its operating profit increased almost 12% from a year ago to €1.3 billion ($1.52 billion), as revenue advanced to €15.1 billion over the same period.
The automaker's overall deliveries rose by 14% to 509,400 cars during the first half of the year. A notable 23% of them were either fully electric or plug-in hybrid cars—nearly twice the 9.4% in the first half of last year.
Customer interest in Skoda's electric range is ramping up, with more than 120,000 orders received by the end of June for the group's full-electric Enyaq and future Elroq models, CEO Klaus Zellmer said. "Compared to the broader market performance, we are doing well," Zellmer stated in a video conference with reporters.
EV Momentum Amid Market Headwinds
Although the pan-European automotive market has seen a decline in total sales because of inflationary pressures, regulatory barriers, and increased competition from Chinese manufacturers, electric vehicles (EVs) have emerged as a beacon. EVs continue to be a strategic priority for European manufacturers subjected to pressure from both environmental regulations and changing consumer tastes.
Skoda's electric vehicles enabled the company to surpass the European market. In the region alone, it sold 409,100 vehicles—11% more year-on-year. Of these, 72,000 were battery electric vehicles, and another 21,400 were plug-in hybrids.
Zellmer emphasized the need for electrification for the future of Skoda. "Our rate of electrified drivetrain sales has to increase," he said. He also pointed out the new Epiq, a small electric SUV priced at €25,000 and targeting first-time buyers. Launch is planned in the first half of 2026, and the Epiq has been considered a pivotal part of Skoda's mass-market EV drive. "We placed quite a lot of hope—or I would even say, expectation—on that car," Zellmer said.
Global Growth Highlights
Elsewhere outside of Europe, Skoda had a standout performance in India. The company sold 33,000 cars in the nation, an impressive 108% higher than last year. These numbers show Skoda's ongoing drive to diversify its presence worldwide and minimize dependence on its traditional European base.
Despite headwinds like U.S. tariffs on electric vehicles and stricter European Union regulations, Skoda's success in ramping up EV offerings without sacrificing profitability is a victory for both the automaker and parent Volkswagen.
As competition stiffens in the electric vehicle segment worldwide, Skoda's strategy of providing competitive electric models with good performance could be the winning formula.
Frequently Asked Questions (FAQs)
What fueled Skoda's 12% profit growth in H1 2025?
The increase in profits was mainly fueled by an increase in vehicle deliveries, particularly in electric and plug-in hybrid vehicles. Increased sales of the Enyaq and Elroq EVs and revenue growth in regions such as India were key.
What was the percentage of electric vehicles in Skoda's sales?
During the first six months of 2025, nearly 23% of Skoda's overall deliveries were fully electric or plug-in hybrids—nearly twice the 9.4% of the same period last year.
What is the Skoda Epiq, and when will it arrive?
Skoda's Epiq is a new all-electric SUV launching at €25,000, aimed at entry-point buyers. The automaker is scheduled to introduce it in the first half of 2026 as a flagship model of its electrification strategy.
How is Skoda doing outside of Europe?
Skoda recorded historic growth in India with a 108% spike in vehicle shipments to 33,000 units during the first half of the year. This is a successful one-year expansion in one of the planet's fastest-growing car markets.
How does Skoda's EV plan stack up against its rivals?
While many European automakers are struggling with EV-related losses, Skoda stands out with profitable growth and rising EV sales. Its focus on affordable electric models like the Enyaq and the upcoming Epiq may give it a competitive advantage in mainstream segments.
