Škoda’s Roadmap to Growth and Innovation in the Middle East

Exclusive Interview with Lukas Honzak, Managing Director at Škoda Middle East

What specific strategies have contributed to the 10% sales growth in the Middle East, and how do you plan to sustain this momentum?

Škoda’s 10% sales growth in the Middle East has been driven by a combination of its diverse product portfolio and nearly 130 years of European expertise, delivering quality and reliability that customers trust. From compact sedans to versatile SUVs, Škoda offers vehicles that cater to a broad range of demographics, ensuring there’s something for everyone. Furthermore, Škoda’s value-for-money proposition and competitive pricing have been crucial in attracting new customers and driving sales across the region.

In addition to its strong product line-up, Škoda has developed robust partnerships with local dealers, expanding its dealer network to improve accessibility and brand presence. By collaborating closely with partners and integrating Škoda’s core values, the company has achieved significant milestones, including the launch of a state-of-the-art, digital-first showroom in Kuwait. This expansion underscores Škoda’s strategic focus on the Middle East as a key region for growth.

The success has also been strengthened by ongoing support from Škoda’s global headquarters, which has provided strategic guidance and resources to ensure smooth operations and alignment with global standards. Recognising the Middle East as a high-potential market, Škoda remains committed to expanding the brand’s presence in the region, positioning it as a key area for long-term investment and growth.

Are there any upcoming model launches, facelifts, or generational changes planned for Škoda vehicles? How do these future releases align with the brand’s strategy for the Middle East?

Yes, Škoda has several exciting model launches and facelifts planned. In the final quarter of 2024, we will introduce refreshed versions of the Kamiq, Scala, and Karoq. At the beginning of 2025, we will launch our hero and top-selling model, the all-new Kodiaq, which has been a tremendous success in Europe, as well as the completely new Superb, our flagship limousine. Additionally, the Octavia, our best-selling model globally, will also receive a significant facelift.

2025 will be a remarkable year for Škoda Middle East, with a completely refreshed portfolio, showcasing new cars in new showrooms with our new corporate identity (CI). This is truly a unique moment for the brand, and we’re excited to present this new lineup to the region, where it’s bound to attract a lot of attention.

Furthermore, we are in discussions with Škoda HQ to bring additional new models to the region very soon, and we’re eager to share more details shortly. This sets 2025 up as a milestone year, with innovative products and expanded offerings that align with Škoda’s strategy to meet the evolving needs of customers in the Middle East.

Can you provide details on any new partnerships or business ventures Škoda is planning or has already secured in the Middle East? Are there specific markets or regions within the Middle East where these new collaborations or expansions are planned?

We are proud to have recently announced a key partnership with L’Étape Dubai by Tour de France. L’Étape Dubai is an amateur cycling event that brings the same quality and experience of the official Tour de France to the Middle East for the first time in February 2025.

Cycling is deeply embedded in Škoda’s brand identity, reflecting our commitment to promoting active lifestyles and community engagement. Our “We Love Cycling” platform exemplifies this ethos, and L’Étape Dubai by Tour de France is a significant part of this initiative. Škoda’s collaboration with the Dubai Sports Council for L’Étape highlights the importance of strategic partnerships with government bodies. This collaboration not only amplifies the event’s reach but also reinforces Škoda’s commitment to promoting health and fitness in the Middle East.

With the growing popularity of cycling in the region, we plan to expand our “We Love Cycling” platform across the Middle East, bringing cycling and sustainable mobility closer to our audience.

Could you share more about the most prominent dealerships and service centres in the UAE? How have they impacted, sales figures, customer experience and service accessibility?

Škoda’s prominent dealerships in the UAE, represented by Ali & Sons in Dubai, Abu Dhabi, and Al Ain, have played a crucial role in boosting sales and enhancing the overall customer experience. We offer customers a seamless buying process and top-tier after-sales support. This customer-centric approach has been a key contributor to Škoda’s sales growth in the region, with the UAE contributing over 56% of the overall Middle East sales year-to-date. The UAE has also experienced an average year-on-year sales growth of 46% since 2021, reflecting high levels of customer satisfaction and convenience.

Looking ahead, 2025 will see major investments in additional Škoda facilities in the UAE, underlining Ali & Sons’ long-term commitment to the brand’s growth. Early 2025 will witness the opening of a brand-new Škoda showroom in Abu Dhabi. In addition to new car sales, Ali & Sons will introduce the Certified Pre-Owned programme, Škoda Plus, in Q1 2025 to cater to a new audience, offering quality pre-owned vehicles with a risk-free experience.

Later in 2025, a state-of-the-art service centre and body shop dedicated to Škoda will open in Al Quoz, Dubai, as the largest Škoda service facility in the region. Additionally, Škoda will continue to bring its products closer to customers through roadshows, motor shows, and pop-up displays in strategic public locations, such as Mirdif City Centre and Dubai Festival City from 18th September to 18th October, where customers can experience our latest models and take test drives.

Furthermore, 2025 marks a significant year for Škoda’s regional growth as we expand into new markets, primarily to Oman and Saudi Arabia, completing our coverage of the entire GCC market. This expansion, along with our refreshed product portfolio and new facilities, will solidify Škoda’s presence across the Middle East, helping us fulfil our commitment to the region.

Could you provide insight into Škoda’s sales development in the Middle East and UAE, and the targets the brand aims to achieve by the end of the year?

Škoda’s market share in the Middle East has grown steadily, with a 10% increase in sales to date in 2024, driven by strong demand in key markets like the UAE and Kuwait. The Kodiaq and Kushaq models have been significant contributors to this success, reflecting the strength of our SUV lineup.

Looking ahead, 2025 is set to be a transformative year for Škoda, as we introduce a completely refreshed product portfolio, including the all-new Kodiaq and Superb, alongside major facelifts for the Octavia and Karoq. With these new models and our expansion into new markets, particularly Saudi Arabia, we expect to further boost our sales figures. While this year has been one of stabilisation and preparation for future growth, our refreshed portfolio and new market entries will position us for even greater success in 2025 and beyond.

Our focus on enhancing customer accessibility and service quality will remain central to our strategy as we aim to solidify our position in the Middle East with our broad range of SUVs and saloons.