Skoda Boss Sees Lower Sales as Normal
The car industry is facing a new reality, with lower sales becoming the norm, according to Skoda Australia Brand Director Lucie Kuhn. The first half of 2026 saw only two non-Chinese brands experience sales growth, with Kia up 0.5 percent and Honda up 2.2 percent. Meanwhile, popular brands like Toyota, Ford, and Mazda experienced double-digit sales declines.
Skoda’s sales declined 3.4 percent in the first half of 2026, a relatively solid performance compared to related brands Volkswagen, Cupra, and Audi, which saw declines of 18.9 percent, 31 percent, and 14.4 percent, respectively. Kuhn acknowledged that every brand would like to grow, but the market conditions are challenging, with interest rates, pricing, and new entrants affecting sales.
The overall market remains relatively stable, with the total number of cars sold in the first half of 2026 almost identical to the same period in 2025. However, the market is becoming increasingly crowded, with 70 competitors vying for a slice of the pie. Kuhn believes that the industry will recalibrate, with established brands needing to get used to selling less volume.
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Audi Australia Managing Director Jeff Mannering agrees, stating that the market is “overcooked” in terms of legitimate customer sales. He believes that the cost of living crisis and manufacturer support are propping up sales numbers, which are likely 20 percent higher than actual customer demand. Mannering expects a tough second half of 2026 for Audi, despite the arrival of new models like the Q5 e-hybrid and updated Q4.
Kuhn and Mannering both believe that car brands will need to adapt to a new normal, focusing on profit over volume. This means finding a balance between volume and price point to ensure profitability at the dealer and supply levels. Kuhn explained that volume growth is no longer a priority, and brands will need to find a viable normal that works for all stakeholders.
As the market continues to evolve, with more new brands arriving, Kuhn and Mannering acknowledge that they will need to fight harder for their share of the market. Mannering stated that while they are not happy about the changing market conditions, it is their job to shift with the times and compete for a larger slice of the pie.
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Looking ahead, Kuhn believes that the car industry will take at least three to five years to find its new normal.
It will be a difficult period.
