Hyundai Battles Skoda For Czech Republic
While Skoda has long been the Cinderella story of the Czech Republic, Skoda could soon find itself deposed as sovereign of their domestic auto market.
In an effort to boost their market share in the Czech Republic to 15 percent by the end of the decade, Hyundai has pursued a “going-native” strategy. The strategy ranges from sponsoring the national soccer team and promoting its factory (where 72 percent of Hyundai’s models sold in the country are assembled, employing 3,500 to build 300,000 units annually), to dealers displaying Skoda’s new Octavia in their showrooms alongside Hyundai’s i30 and i40 models so consumers can comparison-shop right then and there.
The result? Hyundai holds 9.6 percent of the Czech market, up from 3.6 percent ten years prior. Skoda, on the other hand, fell from 48 percent to 30 percent in the same period. However, the original home team has pushed back hard with their own war plan, sponsoring the national hockey team, launching eight new models for the 2014 model year, and relying upon tradition to keep one-third of their homeland’s market.
Like Hyundai, Skoda has a goal of increasing their European sales to 5 percent of the market by the end of the decade; Hyundai currently has 3.5 percent, Skoda holds 4.1 percent.
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