Skoda May Miss Sales Goal as Russian Market Shrinks

Volkswagen AG's Skoda brand aims to reach record sales of 1.5 million units in 2018. But the company tells Automotive News Europe that Russia's slumping market makes that timetable unlikely.

In 2014 Skoda sales climbed 13% to a record 1.04 million vehicles. The unit must maintain average annual growth of about 10% to reach 1.5 million in three years. But Skoda sales chief Werner Eichorn tells ANE the company won't sacrifice profitable growth to meet the target. ""Whether we reach it one year later is not of vital importance," he says.

Skoda's largest market is China, followed by Germany. This year Russia, which normally contributes about 10% of the brand's annual sales, may drop in volume to fourth place behind the U.K., Eichorn says.