Motability and rental help Skoda grow in fleet

Skoda is looking to increase sales to Motability customers to boost its sales in feet next year.

Director Alasdair Stewart said: “We need to make strides in Motability by putting offers on options to get in. You have to discount heavily and keep the service working in the retail network. It’s another channel to explore and is part of our strategy next year.”

Skoda’s fleet sales are up 14% this year across all channels in a market down around 1.5%, giving it a market share of 3%. The company has laid out plans to grow this to 5% in the coming years, and is targeting double-digit growth in 2013.

The launch of Rapid and next year’s new, larger Octavia will give it a solid platform to win business and could see the company’s sales mix – currently 60:40 in favour of retail – swing more towards fleet.

Although Skoda has increased its true fleet sales to corporates and leasing companies this year, it has also pushed more cars in the daily rental sector.

Stewart says the company has a fixed rental budget and will only increase sales in line with its market share proportions in other sectors.

“It’s a good channel and useful to get a supply of used cars for the retail network,” he said. We are active in disposing of these cars which keeps residual values high. Our dealers have a good appetite for them.”