Skoda's boss has said that the coming year will be "the most fierce environment for EVs" and warned: "That’s not healthy. It will destroy residuals, it will destroy customer sentiments".
Pressure is mounting on OEMs across Europe due to the European Union’s fleet-wide emissions targets, which are becoming more stringent in 2025.
But as uptake of battery electric vehicles has slowed many OEMs want governments and legislators to take action, either by easing ambitious targets or providing state measures to encourage drivers into EVs.
Skoda chief executive Klaus Zellmer said: "‘At the end of the day, consumers decide what they want to do with their money and we want to keep all doors open. The trend in the European Union at the moment is not showing the growth of BEV that we originally forecast. So we need to be flexible and cater to what customers actually want."
Zellmer was speaking to CAR at the reveal of the Skoda Elroq, the brand’s new compact electric SUV, which Skoda pledges will cost almost the same as its similarly-sized ICE-powered Karoq when it reaches UK showrooms.
A £31,500 starting price will make the Elroq one of the cheapest electric SUVs in its class, undercutting the new Kia EV3 and Renault Scenic. The Karoq, which was introduced in 2017, will remain on sale.
Zellmer said while the carmaker would continue to increase its electric offering, Skoda needed to be "flexible and cater to what customers actually want".
"Our task is to provide products like the Elroq to make EVs as attractive as possible, and now let’s see what legislation comes up with.
"We can’t change a customer’s sentiment, we can’t provide all the charging infrastructure, and we can’t provide electricity prices that favour an electric car versus an ICE car.
"It’s something that encompasses a lot more than just car manufacturers, and this is why we are as aggressive as we are with the Elroq as we want to meet the CO2 limits and not exceed them, and now let’s see what consumers do going forward."
He said Elroq is a demonstration that Skoda can build and offer a car that’s on a high level with its ICE brother or sister car, and it will be interesting to see how many people gravitate towards the Elroq and how many stay with the Karoq.
"But we want to keep that up to customers to signal what their preference is and not what we think they should drive."
Zellmer showed support for the UK’s ‘ZEV mandate’, adding that Skoda supported a ‘window of three years’ to meet targets, whereas they must be met in the EU by the end of December 2025.
"It’s going to be the most fierce environment for EVs in the next year and that’s not healthy. It will destroy residuals, it will destroy customer sentiments in terms of electric car cost, because they will cost something completely different in 2026.
"We need to try and meet a deadline that reflects what consumers really want at the minute."
An award-winning journalist and editor, with two decades of experience covering the motor retail industry, and accredited by the Institute of Leadership and Management (ILM) plus the National Council for the Training of Journalist (NCTJ)
As editor of AM since 2016, Tim is responsible for its media content, planning and production across AM's multiple channels, including the website, digital reports, webinars, social media and the editorial content of AM's events, Automotive Management Live and the AM Awards. His focus is on interviewing senior leaders of franchised dealer groups and motor manufacturer national sales companies to examine latest developments in UK motor retail.
KCH - 14/10/2024 15:04
Government's meddling in markets never ends well. When cars and trucks replaced horses it was because they were better and made sense. Indeed, they proved to be a lucrative source of tax income with not a subsidy in sight. EVs contribute nothing in Road Fuel Duty, very little in road tax and yet their greater weight wrecks the roads quicker. If charged at home, VAT is just 5%. Like wind and solar, EV subsidies will be unsustainable and when removed, will cause immense market chaos. If the government was wise, it would leave well alone. Sadly, quite the reverse is true.