AutoBeta(AutoBeta.net)09/04 Report--

According to media reports, Skoda is in talks with SAIC to learn from the cooperation model between Volkswagen and Xiaopeng, Audi and SAIC. Skoda brand models will use Auto Roewe's DMH super hybrid system to launch plug-in models that better meet the needs of Chinese consumers.

SAIC and Skoda did not immediately comment on the reports.

Skoda entered the Chinese market in cooperation with SAIC Volkswagen as early as 2005, opening the road for Skoda cars to be made in China, and the first model, Ming Rui, was officially launched in June 2007. Thanks to sharing the platform and core components with SAIC Volkswagen, Skoda once gained a reputation as a "cheap Volkswagen" in the market at a lower price, and its sales were once very substantial. After entering 2010, Skoda accelerated the product layout, successively launched the A-class entry model Rapid Xin Rui, the first SUV Yedi, the travel car Rapid Spaceback Xin, and carried out the imported car business. Skoda's sales peaked in China in 2018, with annual sales of 341000 vehicles.

However, with the rise of independent brands and the intensification of market competition, Skoda's market share has been eroded gradually. Skoda's sales have declined for five consecutive years since 2019. By 2023, Skoda's sales in China were only 22800, a year-on-year drop of 48.9%. This result is even lower than the monthly sales of mainstream car-making new forces. Not long ago, Skoda released sales of 448600 vehicles worldwide in the first half, up 3.8% from a year earlier, but sales in the Chinese market plunged 44.3% to 7100. Retail data show that Skoda's highest-selling model in China in the first half of the year was the Cormick, which was 2181, while the Speedpack, Kroc and Kodiak were 2168, 1309 and 1092 respectively, and the other models were all less than 1,000.

That's why Skoda is in talks with SAIC to use Auto Roewe's DMH super hybrid system on its models, with the core aim of saving Skoda's business in the Chinese market. It is understood that Skoda will learn from the model of Volkswagen and Xiaopeng. Skoda brand models will use Auto Roewe's DMH super hybrid system to launch plug-in models that are more in line with the needs of Chinese consumers. In other words, the plug-in hybrid or pure electric models that Skoda will launch in China may be Roewe's standard-changing cars.

As one of the independent brands of SAIC Group, SAIC Roewe is not late in the field of new energy, and even the first batch of car companies in the field of new energy vehicles launched Roewe 750HYBRID hybrid cars as early as 2011 and Roewe E50 miniature pure electric vehicles in 2012. At that time, Tesla had just entered China, and Wei Xiaoli had not yet been established. However, Roewe does not regard new energy vehicles as an important area of development, under the background of fuel vehicles dominating at that time, and at present, when various companies compete with each other for market share of new energy vehicles, Roewe's new energy vehicles do not seem to have much bright spot. Even the Roewe D5 and Roewe D5X, launched for the new energy car track, did not set off too much spray in the mainstream family car market of 10 to 150000 yuan. Roewe's new energy vehicles still have a lot of room for growth. Retail data show that the Roewe brand sold 70400 vehicles from January to July 2024, of which the Roewe i5 and Roewe D7 were more than 20, 000, 25900 and 21100 respectively, the other models were less than 10, 000, and the Roewe RX5 was 8084. It is understood that Yu Jingmin, deputy general manager of SAIC passenger cars, has set an annual sales target of 200000 + for Roewe, which is under great pressure.

As for whether Skoda will withdraw from China, it is unlikely at present. "Skoda is an integral part of SAIC-Volkswagen," Fu Qiang, deputy general manager of sales and marketing at SAIC-Volkswagen, said at the 2024 Chengdu auto show. "We are now integrating our sales network, and we can also sell Volkswagen-branded and Skoda-branded vehicles in Volkswagen's sales showroom." Not long ago, the media reported that Skoda's production, channel and brand operation in the Chinese market had been merged into SAIC-Volkswagen system and co-ordinated by SAIC-Volkswagen.

In fact, both Roewe and Skoda can see the pressure on the market. Therefore, even if Skoda changes its bid Roewe, it is unclear whether it can renew its life for Skoda.

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