Skoda, though perhaps less known in the United States, is making significant waves in the European electric vehicle market. The Skoda Elroq, the brand’s smallest EV, is quickly becoming a success story, demonstrating that affordability is a key driver in EV adoption. Having sold over 45,000 units in the last six months, the Elroq is positioned as a compelling alternative to more expensive models.
The Elroq can be viewed as Skoda’s version of the Volkswagen ID.3, but with a taller, crossover body style that appeals to a broader range of buyers. More importantly, it significantly undercuts the price of a Tesla Model Y. With a starting price of around €35,000 ($39,700) before incentives, the Elroq is approximately €10,000 ($11,300) cheaper than a Model Y. This price difference makes it an attractive option for European consumers who may not require a mid-size vehicle but are looking to transition to electric mobility. The Skoda Elroq embodies the principle that accessible pricing encourages the shift from gasoline-powered cars to electric vehicles.
| Model | Starting Price (EUR) | Starting Price (USD) |
|---|---|---|
| Skoda Elroq | €35,000 | $39,700 |
| Tesla Model Y | €45,000 | $51,000 |
Skoda’s journey into the EV market began with the Citigo iV, a re-engineered version of the Volkswagen e-Up!, offered at a slightly lower price point. While the Citigo iV was a successful city car, Skoda’s true breakthrough came with the launch of its first bespoke EV, the Enyaq, in late 2022. The Enyaq, along with its coupe variant, provided a distinct alternative to the VW ID.4 and ID.5, boasting a more luxurious interior and a different aesthetic.
The Enyaq has also seen impressive sales figures. In the first quarter of 2025, Skoda reported a 44.7% year-over-year increase, delivering 20,200 units. By the end of March, the company had received 25,000 new orders for the Enyaq, indicating strong and sustained demand. The Enyaq is positioned as a direct competitor to the Tesla Model Y, with a starting price of around €42,000 ($47,600), undercutting the Tesla by approximately €3,000 ($3,400). This competitive pricing, combined with its practicality and appealing design, has made the Enyaq “one of Europe’s most in-demand electric vehicles,” according to Skoda.
| Model | Q1 2025 Sales | YoY Growth |
|---|---|---|
| Skoda Enyaq | 20,200 units | 44.7% |
Looking ahead, Skoda plans to expand its EV offerings to include a larger three-row electric SUV, expected to debut in late 2026. This flagship model, previewed by the Vision 7S concept, will compete with the Kia EV9, Hyundai Ioniq 9, and Volvo EX90 in the European market. Additionally, Skoda is developing a fully electric variant of the popular Octavia, which will rival the Tesla Model 3. This electric liftback (and wagon) is expected to be previewed as a concept at IAA 2025 in September and will likely utilize the SSP platform, an evolution of the MEB platform designed to reduce production costs and support a wide range of vehicle types.
With Tesla’s popularity potentially waning in Europe, Skoda is well-positioned to capitalize on the growing demand for affordable and practical EVs. In 2024, Skoda held a 5.9% market share in Europe, making it the continent’s fourth-largest car brand by sales volume. If its EVs continue to gain traction, Skoda could potentially break into the top three. The success of the Elroq, Enyaq, and the upcoming models underscore Skoda’s role as Volkswagen’s “secret weapon” in the electric era.
| Model | Expected Launch | Target Market |
|---|---|---|
| Skoda Three-Row Electric SUV | Late 2026 | Families needing more space |
| Skoda Electric Octavia | TBA | Individuals and small families |
