Skoda Looks for Sales as Russian Market Shrinks

Volkswagen Group's Skoda brand may not meet its 1.5 million-unit sales goal for 2018 as demand softens in India and plummets in Russia.

Like other carmakers, Skoda is cutting local production in Russia and pondering whether to trim future investment there, notes Automotive News Europe.

Skoda sales in Russia fell only 1% in the first 10 months of 2014, according to the Moscow-based Assn. of European Businesses. But the overall market contracted 13% over the period, and shrinkage continues because of a weakening ruble and international trade sanctions prompted by the Russia-Ukraine conflict.

Skoda dropped local production of its Fabia small car in Kaluga last month, leaving the Rapid small sedan as the brand's only locally produced vehicle. The unit also makes the Superb midsize sedan from kits imported from the Czech Republic.

Russia's slump also could affect production plans for Skoda's Yeti small crossover vehicle, which is currently assembled in Nizhny Novgorod. The vehicle was updated last year. But the company tells ANE it hasn't decided whether to build the next-generation model in Russia.