Skoda Auto's Production Surge and Its Real Estate Footprint

In 2025, Škoda Auto produced an impressive 1,065,000 vehicles worldwide, marking a substantial 15% year-on-year increase compared to 2024. This achievement represents the highest production volume for the automaker in six years, demonstrating robust and sustained growth. Such a significant surge in manufacturing output directly translates into increased demand for various types of industrial real estate. Businesses operating in the supply chain, logistics, and warehousing sectors will find growing opportunities to provide strategic storage solutions for raw materials, components, and finished vehicles. This sustained high-volume production necessitates efficient distribution centers and well-located industrial parks to support the entire manufacturing ecosystem.

Electric Vehicles Drive New Logistics and Facility Needs

The electric vehicle (EV) segment played a crucial role in Škoda's 2025 success, with 189,500 fully electric vehicles (BEVs) produced. The new Elroq model contributed significantly with 112,500 units, alongside nearly 77,000 Enyaq vehicles. The rapid expansion of EV production introduces specialized requirements for industrial facilities, including dedicated battery storage solutions, advanced charging infrastructure, and manufacturing spaces optimized for EV component assembly. Furthermore, Škoda Auto supplied 329,000 battery systems to the Volkswagen Group, highlighting the intensive logistics involved in handling high-value, sensitive EV components across the supply chain, creating demand for specialized warehousing and transportation services.

Component Manufacturing and Supply Chain Demands

Beyond vehicle assembly, Škoda Auto is a vital component supplier for the wider Volkswagen Group. In 2025, the company produced over 1,030,000 gearboxes and more than 500,000 engines. This massive volume of component manufacturing and inter-group supply underscores the intricate and demanding logistics network required. Businesses specializing in industrial warehousing, cross-docking facilities, and efficient transportation solutions are essential partners in ensuring the seamless flow of these critical parts. The sheer scale of operations generates consistent demand for robust and strategically located logistics hubs.

Global Expansion and Regional Real Estate Opportunities

Škoda Auto's strategic global expansion further amplifies the need for diverse real estate solutions. In 2025, the company commenced production of the Kushaq and Slavia models in Vietnam, marking a new manufacturing footprint that will drive demand for industrial land, new factories, and local distribution centers in the region. Coupled with existing production capacities in key markets like China, India, and Slovakia, Škoda's global operations necessitate a wide array of industrial properties, including manufacturing plants, logistics hubs, and assembly facilities. This geographic spread offers varied investment and operational opportunities for real estate providers and related service businesses.

Beyond the Factory Floor: Office Space Requirements

Such significant growth in production, global reach, and technological advancement also translates into increased demand for modern office space. As part of the Volkswagen Group's Brand Group Core, Škoda Auto requires expanded administrative offices, research and development facilities, sales support centers, and corporate functions. Businesses offering flexible, high-quality office solutions in central European locations, as well as emerging markets where Škoda operates, will find sustained opportunities to cater to the evolving needs of a growing automotive leader.

Source: systemylogistiky.cz