Shortly after the majority of car brands on the Czech market introduced significant price decrease this autumn, the car producer Škoda Auto from Mladá Boleslav also announced price reductions on Wednesday.
The company, owned by the German company Volskwagen, is reacting not only to its rivals, but also to the consequences of the financial crisis due to which the company’s sales in Europe have been falling. Reductions range from CZK 20,000 for the basic model of the modernised Octavia Facelift and Fabia, more than CZK 40,000 discount for the Roomster model, up to CZK 100,000 saving on the Superb model.
The price of the new Octavia, whose mask has become more like the masks of the other Škoda Auto models and whose conservative look has been replaced by round lines, start at CZK 349,900. The new Octavia, whose older model was recently discounted by CZK 55,000, will be available as of mid-November. Other advantages include better car equipment for which no extra money will be charged. “The price reduction will affect only the Czech Republic, the prices of Škoda cars abroad are up to local importers,” says David Šikula from Škoda Auto.
The most significant discount will affect the Superb models of the second generation. The basic price of Superb 1.4 TSI/92kW in the Comfort version with a six-gear transmission starts at CZK 569,900. This presents a reduction by CZK 50,000 in comparison with the original price.
The price reduction for the Superb model with the compression ignition engine 2,0 TDI CR amounts to as high as CZK 100,000.
Foreign cars are no longer that attractive
The price reduction comes at a time when it is no longer advantageous to import cars from abroad because of the significant weakening of the Czech crown. The crown, which has reached the weakest value yesterday since May, means that the basic model of Fabia in the Classis version can be purchased for almost CZK 30,000 more in Germany in comparison with the Czech Republic. The same price as in Germany will be paid in Latvia, where the model was significantly cheaper until recently.
Also, the recently established association of authorized sellers and services of Škoda cars, which comprises 86 out of about 160 Czech sellers of the Škoda sales network, was going to push Škoda to decrease its prices, as it had been selling its cars here for almost the highest prices in Europe.
According to Jiří Tůma, chairman of the association, Czech dealers were not able to do well in the war against the import of new and cheaper Fabias, Octavias and Superbs from western Europe. Although Škoda Auto denies that its Wednesday step is connected with the activities of the association, its decision will most likely relieve both the dealers and customers. “We welcome Škoda Auto’s decision. The car maker will also pay the difference in prices for cars that we have in store,” said Jiří Tůma, who is also the co-owner of the company Auto Tukas.
The kingdom of discounts
Probably all car brands in the Czech Republic announced a reduction in prices this autumn. The biggest discounts reach up to one third from the original price.
Price reductions over 10% are now offered by Nissan, Honda, Fiat and Mitsubishi. Even car brands whose heads considered price reduction to be undignified for them a few years ago, are now taking part in the price race. So the fans of BMW, Mercedes or Jaguar can now also buy their cars at a lower prices. While the fall in prices of luxurious cars was supported by the strong crown in the middle of the year, dealers now have to pay for the discounts themselves.
People interested in new cars can also be sure that they will get better car equipment for their money. While earlier they had to pay for example for the extension of their warranty, now their car will be pampered for free. The price reduction storm has reached the Czech Republic, although the country is one of the few places in the world that has not been affected by the decreasing interest in new cars. Experts say new car sales this year will not fall below 10%, accounting for CZK 146,000 sold cars.