Skoda is already heavily involved in the pan-European fleet market, with customers operating in most of the large industries – such as electricity and telecommunications. ‘But, the main focus for us at the moment is on the Small Medium Enterprises (SMEs),’ says Rainer Mielke, Director of Global Fleet. ‘Skoda has the structure and the products to suit the strategies of this type of customer. At the moment this segment is most successful for us – and we’d like to extend this even further.’

Is this because of trends in the European economy? ‘Yes, but not only that. Remember, we are part of a very large family – Volkswagen Group – and it’s important that within the Group, everybody supports each other and does not fight against each other. Our sister brands are very strong with the big fleets while we focus on the small to medium enterprises.’  

Which models are proving most successful in this strategy? ‘Most successful is Octavia. More than half of all the fleet sales we have at the moment in Europe and worldwide are of Octavia – although Fabia is doing well also. With Octavia, it is not just the estate but also the hatchback. These cars offer roominess, excellent value – and great quality. These things are most appreciated by our customers.’

How much of Skoda’s international fleet business is carried out in collaboration with other Group brands? ‘We have an organisation called Group Fleet International, based in Wolfsburg, which is charged with selling our brands to really big pan-international customers – those with 10,000/20,000 cars in their fleets – almost like a “One-Stop-Shop” approach. When you are talking to this type of customer it’s important that you have one single point of contact when they ask: “What can you do for my fleet?” As a Group, we have a huge advantage in that we can go from the small Skoda Fabia up to the Audi A8 – and everything from the Group model ranges in between, including light commercial vehicles. We, Skoda, are part of this. Whenever there is this type of tender, Skoda will be in the offer. It depends on the customer’s needs and how much they wish to invest.’  

He says that many customers want to reduce the number of brands within their car park. ‘This reduces complexity – and increases their strength from the demand point of view. One “brand” is Volkswagen Group – yet automatically, there are four sub-brands within that Group.’

What are his perceptions of the international fleet market? Is it growing and if so, in which areas? ‘If you look back to how things were in 2008, you can see that the market is recovering. From the fleet perspective we should forget 2009 – with distortions caused by all the scrappage schemes. In 2009, just 25% of all Skoda’s deliveries were to fleet customers. Before that, the figure was around 30%. We are now getting back to that figure – and beyond.

‘From our perspective, the SME sector is growing – particularly the small, autonomous companies with only maybe one or two cars. This is a huge segment – not just in the UK, but Europe-wide. We should not underestimate that. With large businesses, what we are also realising is that more and more companies are going for cars instead of cash. That trend is particularly strong in the UK, but other countries will follow.’

In which European markets is Škoda particularly strong? ‘We are, of course, very strong in the Czech Republic – with a share of more than 40%. We have more than 25% in Slovakia also. But in these markets – where we have been the leaders for many years – we still have to fight strongly to maintain our market share. The Koreans – such as Kia – are now very strong too and life for us is not that easy! It’s a very different strategy to in the UK, for example, where we are really trying to grab some share from the big players.

‘In Western Europe we are strongest in Germany – both in terms of volume and market share, which is about 4%. In other Western European markets we have normally between 1% and 3% share. The market for us in the UK is also developing very well. Austria is good, as is Finland – although quite small, we are more than 5% there. In Italy and France we are below 2%. We would like to increase these markets but both are very difficult for us. France, for example, has a number of French manufacturers to which French customers are very loyal…’

What are Skoda’s plans for the emerging fleet markets of China, India and Brazil? ‘In China, we are already quite strong, we sold more than 130,000 cars last year. We are looking closely at India too and certainly want to be present as that market emerges. Brazil is a completely different subject and we are not in this market at the moment and currently have no plans.’

He says that in the fleet sector, environmental considerations are increasingly important in some markets more than others. ‘It’s important in the UK but even more so in the Scandinavian countries and The Netherlands. At the Paris Show this year, we announced our new low CO2 GreenLine products – with the new GreenLine Fabia as the “flagship”, with 89g/km CO2. We are not focusing on hybrid at the moment although we are investigating the opportunities for electric power.’

Does Skoda handle import and distribution itself in the various markets or does it use agents? ‘It depends on the market. We have independent importers in The Netherlands and Switzerland, for example. We have a subsidiary in, for example, Germany. It’s a complex area, it’s not homogeneous with a different approach according to the market.’

How extensive is Skoda’s relationship with the major leasing and contract hire companies? ‘Again, it depends on the country. There is more involvement when dealing with the big fleets. In lots of countries – Germany, for example – we are working closely with Volkswagen Financial Services AG. More than 70% of customers – particularly with the big fleets – are leasing, usually with full service and maintenance and some with fleet management services as well.

What advice would he give any company sending a Request for Proposal (RFP)? ‘I would say that if they are looking for value-for-money then they should consider Škoda. This is my main message. We offer good quality, low CO2, safety – most of our cars have five stars Euro NCAP – good residual values and good value for money. And our prices are honest.’