Contrasting fortunes for Skoda and Porsche

Skoda is selling well at present, especially in Europe and Asia.

The Czech carmaker just had the best second quarter in its entire history and left stablemate Porsche in its wake.

Skoda scored $US869 million in operating profit, or a 9.5 per cent operating return on sales. In the first half of the year, operating profit was $US1.52b, and Skoda saw good growth in its EV sales mix. Vehicle deliveries increased 14 per cent to 509,400 units, with fully electric or plug-in hybrid models accounting for 23 per cent of those deliveries.

That’s an increase of almost 10 per cent for the first half of last year. Locally, Skoda sold 506 vehicles in the first half, level pegging with Mini and not so far behind Audi on 570.

Chief Executive Klaus Zellmer said that customers had placed more than 120,000 orders for Skoda’s Enyaq and Elroq EVs models by the end of June. Skoda is set to launch Epiq, an electric SUV priced at 25,000 euros, in the first half of 2026.

“We are doing good,” Zellmer commented.

Typically, you’d expect to see strong profits on premium badges, which can sell for a higher price over production cost. Skoda’s doing it just by running the business well and making decent products. 

Porsche pain in China

By contrast, Porsche isn’t faring quite so well. Despite having its best first-half in America yet, globally sales were down six per cent year over year. Its operating profit of $181 million was just one-fifth of what Skoda managed.

Most of the pain was inflicted in China, where sales plummeted by almost one-third in the first six months of the year. That’s on the back of tariff drama and increasingly competitive Chinese models. In America, tariffs are weighing Porsche down as well, though the new agreement between the US and Europe (15 per cent tariffs) may see things improve.

As Porsche CEO Oliver Blume put it, “Our business model… no longer works in its current form.” 

By contrast, Skoda is far less reliant on the Chinese market and isn’t even in America, concentrating primarily on Europe. Turns out that selling well in one primary region pays dividends. 

Read our review of the 2025 Skoda Superb.

In the same vein, Spanish Volkswagen subsidary Cupra is also seeing huge gains right now by staying focused on Europe. It experienced a 33 per cent sales spike in the first half of this year, according to Bloomberg figures.

As the trade wars play out, it will become tougher for automotive brands to operate globally. And currently, regional brands are faring well.