Demand for crossovers and SUVs shows no sign of abating. Ever more brands are piling in to a class which in Europe is led by the assailed but still strong Nissan Qashqai. Now Škoda believes it can build up a strong following with the Karoq, a new name in a segment one size up from where the Yeti formerly found a lot of success.
You need only look at the Volkswagen Group’s recent statement of its CY2017 financials to see why Škoda continues to be showered with extra vehicles. The Czech brand’s profit margin is second only to Porsche. Just pause for a moment and take that in. Yes, Škoda delivers a return on investment that cannot be matched by Audi. Or Volkswagen, or SEAT, or Bentley for that matter. The TDI scandal has left a festering, sticky-black stain on Audi’s balance sheet, which is part of the reason why its margins are not what they had been. Still, that shouldn’t draw attention away from Škoda’s achievement in 2017 which continues into this year.
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Sales revenue increased by 20.8 per cent year-on-year to EUR 16.6 billion in the 2017 fiscal year. What’s more, operating profit improved by 34.6 per cent to EUR 1.6 billion, a result that Škoda attributes to higher volume and mix effects. The operating return on sales rose 8.7 per cent in CY2016 to 9.7 per cent. For Audi, which includes Lamborghini, the corresponding number was 8.4 per cent, for SEAT it was 1.9 per cent and Bentley saw a decline to 3.0 per cent from 5.5 per cent. Compared to Škoda, even Volkswagen Passenger Cars came up short (4.1 per cent) but Porsche, with 18.5 per cent, is the envy of the entire industry.
What is Škoda getting so right that others in the mass market can’t seem to match? There is no secret sauce; it’s simply a case of keeping a close eye on costs, lifting margins thanks to ever more appealing models and nurturing a kind of happy owners’ club image similar to what surrounds Subaru and Honda in the USA. Škoda has been very good at encouraging the idea of it being the go-to brand for those who want the feeling that they are getting first-rate engineering and quality without having to pay Volkswagen prices. Similar to what Kia Motors Europe has become so skilled at doing, in fact.
With the Fabia, Octavia, Superb and Kodiaq all strong sellers in Europe and China, and to a lesser extent, the Rapid and Citigo too, Škoda has no dud models. And where once it used to take years to enter an expanding segment as Volkswagen gave investment priority to other brands, now Škoda is the darling child who can seemingly do no wrong. It has earned its place at the top table when the decisions are being made in Wolfsburg about which divisions have priority for new models. Just look at the number of markets it has been allowed to expand into and the size of the brand’s range plus the additional future models coming Škoda’s way compared to SEAT.
Enter the Karoq, a model which will surely take this brand to even higher market share and margin heights, particularly in Europe. This C-SUV slots in below the D segment Kodiaq and will be supplemented by a B segment entry which arrives in 2019, once the Volkswagen T-Cross has been given a breathing space of six months or so to establish itself. That third SUV hasn’t yet been given a publicly official model name, but it seems safe to assume that it will start with a K. Such a vehicle was hinted at by the Vision X, a concept which was revealed at last month’s Geneva motor show. The production version will be revealed at the 2019 Geneva show.
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By GlobalDataKaroq production commenced at Kvasiny during July 2017 but the ramp up was intentionally slow and the first vehicles did not reach customers until October. In January, build was added at another Czech plant, this time the company’s main factory adjacent to its headquarters in Mladá Boleslav. The SAIC Volkswagen joint venture also manufactures the Karoq, production at Ningbo having commenced at the start of the year.
The model’s dimensions – 4,382mm long, 1,841mm wide, and 1,605mm high – place it firmly in the C segment and link it to two other Group vehicles, the SEAT Ateca (also manufactured in Kvasiny by Škoda) and VW Tiguan (Wolfsburg). All of these SUVs share a platform too: MQB A/B.
Unlike the Peugeot 3008, a rival which is growing rapidly in popularity in many European markets including the UK, the Karoq can be ordered with all-wheel drive. The diesel engine choice is between a 1.6 and two versions of a 2.0-litre. The petrol line-up consists of a 1.0-litre three-cylinder or a 1.5-litre four-cylinder. All five are turbocharged.
This was the first Škoda to have an optional digital instrument panel which can be customised for up to three drivers. The boot, meanwhile, has a capacity of 521 litres. This rises to 1,630 litres when all three back seats are folded, while a VarioFlex system allows each of the three to be removed. That lifts capacity to 1,830 litres. Under the boot floor there is a well which can be filled with a space saver spare for which Škoda will charge you GBP150. Other options on the press test car included Park Assist (GBP300) and a Canton sound system (GBP500). Without these, the price for a Karoq powered by the 150PS 1.5 TSI with a seven-speed DSG transmission is GBP28,410.
Fuel consumption is officially rated at 50.4mpg (Combined cycle) and for once, my own average was fairly close to that. As for the CO2 number, that’s 127g/km, top speed is said to be 126mph and 0-62mph takes 8.6 seconds. The turbocharged petrol engine could do with a little more torque, and all-wheel drive would also be handy but for the average family buyer, this is probably going to be the most popular choice in a range which stretches from GBP20,880 to GBP32,005.
There are so many handy, thoughtful touches in this car – things such as four large hooks on which to hang shopping bags in the boot, big windows which kids will love – but the DSG wouldn’t be my choice. The reason why is there can be a heart-stopping second or two after engaging reverse. You need to get in the habit of applying the parking brake as otherwise the car rolls backwards after you take your foot off the brake. It’s probably too strong a term to call it a fault; more a quirk.
The Edition trim level includes a glass roof and that has a sliding section which works well to bring much needed light into the two-tone dark and light grey interior. Some elements of the grainy plastics have soft surfacing, the door pockets are deep and wide and the driver’s can be optionally fitted with a little bin which is hung from a stretchable bungee cord. All doors have a satisfying thunk and in the press loaner, the tailgate was electric although sometimes it took a few presses of the fob to make it close. That’s not that much of an issue as there is also a switch on the driver’s door.
Škoda is also said to be planning to add a high performance Karoq RS (vRS in the UK) later in 2018 and in the years to come, we may well see some form of electrification – most likely a plug-in hybrid, but don’t expect to see such a version until 2020 or later. The life cycle will likely last for eight years with a facelift in 2021.
Overall, this is yet another first rate effort from the ‘Simply Clever’ brand and it will be no surprise if Škoda just keeps on taking sales from its rivals. Numbers just in reflect that too, with UK registrations dipping by only 2.6 per cent to 13,300 deliveries during March, while some of the main players saw far higher declines (Ford: -30 per percent). That brings the year-to-date total to 21,611 which means a market share of 3.01 per cent.
