Monday, July 14, 2008
Skoda predicts upper-medium sales surge
Skoda predicts the rapid decline in sales in the upper-medium sector is set to level off with 4X4 and MPV fleet drivers returning to the traditional family car.
The brand hopes to exploit a resurgent D-sector with its latest generation Superb flagship model which it is pitching against a number of new models including the Mondeo, C5, Laguna and forthcoming Vauxhall Insignia.
Until the turn of the decade the upper-medium sector was one of the best performing segments in the new car market with sales powered by fleet demand.
Total sales in 1998 hit 549,747, accounting for 24.5 per cent of the market. Since then they have dropped in each successive year with 2007 seeing 386,414 units sold, accounting for a 16 per cent market share.
“The upper-medium sector has been in decline for several years as buyers have moved to MPVs and SUVs. We’ve also seen the exit of MG Rover and Nissan pulling out of the sector, “said Chris Horrell, Skoda’s product marketing manager for the Superb.
“However, there are now a lot of new models in the sector and customers with MPVs and SUVs are finding them expensive to run with high C02 levels and fuel consumption. We expect buyers to come back to this sector and for sales to increase,” he said.
The brand expects its new Superb, launched in September, to appeal predominantly to fleet buyers looking to squeeze the most out of their C02 based benefit-in-kind payments. It expects to sell up to 4,000 units a year.
Cap also believes the rapid decline in the sector will ease off as buyers look to reduce their running costs.
“The upper-medium sector is principally maintained by company car drivers and has been in decline for several years in the used market subject to the trend of downsizing,” said Mark Norman, Cap’s operational development manager.
However, Norman believes any movement back to the sector will stem the decline rather than create significant growth.
“The upper-medium sector is also subject to the drift toward compact prestige cars among those who do have money to spend on image. We suspect that, rather than spelling a resurgence, any drift from SUVs and 4x4s will only slow the decline,” he said.
DATED: 14.07.08
FEED: AM
The brand hopes to exploit a resurgent D-sector with its latest generation Superb flagship model which it is pitching against a number of new models including the Mondeo, C5, Laguna and forthcoming Vauxhall Insignia.
Until the turn of the decade the upper-medium sector was one of the best performing segments in the new car market with sales powered by fleet demand.
Total sales in 1998 hit 549,747, accounting for 24.5 per cent of the market. Since then they have dropped in each successive year with 2007 seeing 386,414 units sold, accounting for a 16 per cent market share.
“The upper-medium sector has been in decline for several years as buyers have moved to MPVs and SUVs. We’ve also seen the exit of MG Rover and Nissan pulling out of the sector, “said Chris Horrell, Skoda’s product marketing manager for the Superb.
“However, there are now a lot of new models in the sector and customers with MPVs and SUVs are finding them expensive to run with high C02 levels and fuel consumption. We expect buyers to come back to this sector and for sales to increase,” he said.
The brand expects its new Superb, launched in September, to appeal predominantly to fleet buyers looking to squeeze the most out of their C02 based benefit-in-kind payments. It expects to sell up to 4,000 units a year.
Cap also believes the rapid decline in the sector will ease off as buyers look to reduce their running costs.
“The upper-medium sector is principally maintained by company car drivers and has been in decline for several years in the used market subject to the trend of downsizing,” said Mark Norman, Cap’s operational development manager.
However, Norman believes any movement back to the sector will stem the decline rather than create significant growth.
“The upper-medium sector is also subject to the drift toward compact prestige cars among those who do have money to spend on image. We suspect that, rather than spelling a resurgence, any drift from SUVs and 4x4s will only slow the decline,” he said.
DATED: 14.07.08
FEED: AM
