Skoda setting conservative sales targets in Australia despite projected EV growth

Skoda Australia expects its electric vehicle (EV) sales to surge through 2027, but is keeping a lid on broader growth ambitions as Chinese competition and cost-of-living pressures bite.

The Czech automaker expects to sell 2500 EVs next year, up from a projected 2000 for 2026, largely due to the upcoming launch of the Epiq small SUV.

The Peaq large SUV may also land before 2027 is out, contributing to an increase in EV sales.

However, Skoda Australia's director Lucie Kuhn isn't expecting the brand's overall sales performance to improve dramatically.

“I think currently it would be a bit less humble to develop any strong growth strategies, especially due to the current environment," Ms Kuhn told CarExpert in Queenstown, New Zealand.

“I think none of the legacy brands are brave enough to do so.” 

According to Ms Kuhn, the biggest challenges facing Skoda – and indeed other long-established automotive manufacturers – are cash-strapped buyers and the emergence of Chinese competition.

“Right now we need to get through the volatility that is in the market. It will stabilise... but the cost of living isn't helping," she explained.

“And the pricing of Chinese entrants coming into the country is really difficult for all of us to compete [with].

"We are going through a phase where it's difficult for all the legacy brands to keep their position and potentially develop – through a product offensive, or pricing, or offers – some kind of moderate growth.”

At the halfway point of 2026, combined new vehicle sales were up by 1.2 per cent compared to the same period last year.

However, this gradual growth comes despite the rapid influx of new manufacturers joining our market, most of which have arrived from China.

As such, the market share of many legacy automakers has taken a substantial hit.

Nissan sales were down 32.8 per cent across the first half of 2026, while Mitsubishi and Subaru saw slumps of more than 25 per cent. Local sales leader Toyota posted a 21.4 per cent decline.

Skoda hasn't been hit quite as hard, with 2398 vehicles sold to the end of July – down just 3.4 per cent year-on-year.

Its market share has also held steady at 0.3 per cent, despite the growing number of brands competing for Australian buyers.

For now, Skoda Australia appears content to hold its ground in an increasingly crowded market, with EV gains to help shore up its position.

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