Skoda Auto Volkswagen India’s FY24 profit slips 69% to Rs 95.66 crore, revenues cross Rs 20,000 crore

Skoda Auto Volkswagen India, the local subsidiary of German auto major Volkswagen Group, saw its profits slip by 69% to Rs 95.66 crore in FY24, as lower domestic volumes and higher material costs impacted its operating performance.

However, the manufacturer of the Slavia and Taigun — Skoda Auto Volkswagen India — posted a total revenue growth of 8%, crossing the Rs 20,000 crore annual turnover mark for the first time and ending the year with Rs 20,075 crore. This was driven by higher exports and strong double-digit growth in its premium brands —Audi, Porsche, and Lamborghini.

Reviewing Skoda Auto Volkswagen India's annual performance, the directors' note stated that the company had fortified its position in the Indian automotive sector, matching the record-breaking sales figures of 2022.

“The Group’s domestic sales also reflected impressive results across its five brands. The Board continues to work strenuously to strengthen the company’s financial position and has embarked on various initiatives to boost sales, control costs, and improve efficiency in all our operations,” added the note.

The top management highlighted that the year saw the luxury brands — Audi, Porsche, and Lamborghini — achieve impressive double-digit growth, which they described as “indicative of the market’s appetite for premium mobility.”

During the April 2023 to March 2024 financial year, Skoda Auto Volkswagen India produced over 1.36 lakh units, reflecting a 10% growth in output. However, none of the brands crossed the 1 lakh unit mark in annual domestic sales.

Exports for FY24 stood at 45,734 units, 64% higher than FY23.

While Skoda Auto’s annual sales slipped into negative territory, the Volkswagen brand posted an 8% growth in the last financial year with sales of 43,197 units. However, in terms of domestic sales, the Skoda brand maintained its lead over Volkswagen.

Interestingly, Volkswagen's exports exceeded its domestic sales, underlining the critical role of its manufacturing base in catering to global markets.

VW Group’s Brand Performance

Volkswagen

The directors' report on the Volkswagen brand noted that VW’s focus during FY24 was to ‘accelerate’ its key strategic priorities, bringing the brand closer to its customers. The company expanded its network to an additional 45 cities across India, ending FY24 with 190 sales touchpoints and 140 workshops across 170 cities.

Volkswagen also significantly enhanced its product portfolio with new variants and upgrades.

Skoda

Regarding the Skoda brand, the directors mentioned continuous actions across the range, including model year updates and special editions. The company proactively joined the safety bandwagon, attaining five-star safety ratings for its entire range, including the Kushaq, Slavia, and Kodiaq models.

"Skoda Auto India continues its tradition of offering a 100% fleet of crash-tested cars, all rated 5 stars for adults and children in the Indian market," the note added.

Like Volkswagen, Skoda expanded its footprint to 260 touchpoints to cater to a wider market. The directors' note also highlighted Skoda’s upcoming compact SUV, planned for launch in H1 2025, targeting one of India's largest and fastest-growing segments.

Audi

Audi India continued its growth trajectory, retailing 7,027 units in FY2023-24, a 33% increase. The pre-owned car business, Audi Approved Plus, also grew by 50% during the same period.

In FY24, Audi India strengthened its BEV portfolio with the launches of the Audi Q8 e-tron and Audi Q8 e-tron Sportback. The company also contributed to India's BEV infrastructure by inaugurating the country’s first green-powered ultra-fast charging e-tron hub in BKC, Mumbai.

Porsche

Porsche India recorded its best retail year since its inception, selling 914 new vehicles in 2023, a 17% increase over 2022 volumes.

The report noted that Porsche India demonstrated its commitment to an electric future, recording the highest number of Taycan deliveries to date, with 113 BEVs sold. It also maintained strong demand for its sports coupes, with 65 deliveries of the 911 during the same period. In 2023, Porsche India expanded its network with five new facilities opened in Ahmedabad, Bengaluru, Chennai, Kolkata, and Mumbai, boosting its total network to eight facilities.

Lamborghini

Lamborghini, the Italian sports car brand, also had another record year in India, delivering 100 cars. The brand celebrated its 60th anniversary and marked the start of a new era of sustainability with the launch of its first hybrid vehicle, the V12 Revuelto, in December 2023.