Skoda Sales Chief: Most Brands Struggle to Profit from Electric Cars

18.10.2024

Martin Jahn, Skoda's head of sales and marketing, has emphasized the profitability challenges in the electric vehicle (EV) market, stating that only a few manufacturers are currently making a profit from EVs. Jahn pointed out that improving profitability is crucial for the long-term sustainability of electric technology. He also mentioned that customers expect EV prices to eventually align with traditional models, such as Skoda's upcoming Elroq small SUV, which aims to be priced similarly to the petrol-powered Karoq.

‟With decreasing CO2 limits, we need to sell more electric vehicles, so naturally, we're trying to lower prices,‟ said Jahn. ‟However, costs are not decreasing as rapidly, which affects profitability. Electric car profitability is a challenge for everyone.‟ He emphasized that while efforts to reduce costs are in progress, battery expenses remain a major concern.

‟To incentivize people to purchase electric vehicles, we need to examine all costs - including management and company-wide expenses. Artificial intelligence could streamline processes, and we may have to reduce workforce size, but battery cost continues to be the primary factor driving EV expenses,‟ he explained.

‟If over 50% of our lineup transitions to electric, and we still face low profitability, the model will not be sustainable. The question then becomes how to make them more profitable,‟ Jahn continued. ‟We need to concentrate on reducing battery costs without compromising quality for our customers.‟

Are you considering switching to an EV, or are there certain factors holding you back?‟