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Skoda, a second-tier brand owned by Volkswagen, has had a surprising performance this year. Skoda delivered 102700 new cars worldwide in July, up 3.1% from a year earlier and setting a record for July sales, according to data released by Volkswagen Group. Sales are strong in Europe, thanks in part to consumer demand for SUV models such as Kroc and Kodiak.

Specifically, in western Europe, Skoda's July delivery rose 12.3 per cent to 45600 vehicles from a year earlier, while in Germany, Europe's largest single market, Skoda delivered 18600 new cars in July, up 16.2 per cent from a year earlier. In addition, Skoda achieved double-digit sales growth in markets such as France, the Netherlands, Sweden, Denmark and Greece.

In central Europe, Skoda sold 17500 new cars in July, up 11.2 per cent from a year earlier; in the Czech domestic market, Skoda sold 8000 new cars, up 12.1 per cent from a year earlier. In Russia, Skoda delivered 7300 new cars in July, up 10.4 per cent from a year earlier.

Of course, although Skoda has a promising future in the European market, it does not seem to be very promising in the domestic market. Skoda sold 21100 vehicles in China in July, down 15.7 per cent from a year earlier, according to data.

Skoda Mingrui has been in production in Shanghai Volkswagen since 2006, becoming the third Volkswagen brand to be put into production in China after Volkswagen and Audi. Skoda has been in China for 13 years. Skoda, which relies on Volkswagen Group, has also experienced a boom since entering China: in 2013, its sales in China reached 1 million for the first time; in 2017, its sales in China were 325000, an increase of 2.5% over the same period last year; and in 2018, despite the overall decline in the car market, its sales still bucked the trend and reached 341000, up 4.9% from the same period last year.

But Skoda's sales have been falling into 2019. According to relevant data, Skoda in China has been declining at a double-digit rate in the first five months of this year, falling by 11.7%, 18.4%, 27%, 40% and 31%, respectively.

For the serious decline in sales, although it has a lot to do with the current automobile market environment, it ultimately boils down to its own problems, and the lack of product power is the main reason for its development setbacks. First of all, outside the appearance does not keep pace with the times, in today's gradually younger era, Skoda still maintains the appearance of the old model, which is difficult for consumers to accept. Skoda, as a brand that relies on Volkswagen's century-old tree to grow, has never had a typical representative model. Skoda Mingrui is relatively good, but it is generally done in brand marketing and can not raise the interest of consumers at all.

Another problem troubling Skoda's sales is the volume of complaints. according to statistics, as of July this year, Volkswagen Skoda had a total of 486 complaints, mainly including Speed School, Fast Rui, Mingrui and other models. The main complaints are the smell inside the car, abnormal transmission lights, abnormal braking system and transmission setbacks.

Generally speaking, if Skoda wants to make a breakthrough in the domestic automobile market, one of the necessary ways is to improve the product strength and improve the appearance and configuration. Secondly, attention should also be paid to the issue of automotive products. After all, word-of-mouth and popularity are important conditions for development. Once problems arise and negative assets are formed, then marginalization is not far away.

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