With award-winning safety ratings, innovative features, and a growing range of hybrid and electric vehicles, today Skoda is recognised as a trusted car manufacturer worldwide.
But where was Skoda founded? Is Skoda a German manufacturer? And when did VW buy Skoda? We’ve pulled together a summarised history, tracing Skoda’s path from state-owned beginnings to the innovative brand we know today. From Victorian-era bicycles to global market expansion in the 1960s, we explore 125 years of the Czech automaker’s story.
The early years
Skoda’s story began in 1895, when Václav Laurin and Václav Klement founded a small bicycle manufacturing business in Mladá Boleslav, Czech Republic. Just a few years later, in 1898, they expanded into motorcycles with the launch of their Slavia model.
Branching out to four wheels, their first car arrived in 1905: the Voiturette A. Branded as Laurin & Klement, but regarded as the first Skoda by many, it could seat two passengers and reach a top speed of 25mph.
By 1907, the Laurin & Klement Shareholding Company was founded, and the successful L&K Type F four-cylinder launched.
Post WWI, the 1920s and 1930s
The toil of the post-war economy pushed Laurin and Klement to find new partners, and they merged with the Czech conglomerate, Skoda Works, in 1924. In 1925, the first official Skoda car, the Skoda 110, emerged.
Over the next five years, models like the Hispano Suiza and Skoda 860 were made, and assembly line production commenced in 1930. Familiar cars including the Popular, Rapid and the flagship Superb were manufactured, and by 1936, Skoda had become one of the biggest car manufacturers in Czechoslovakia.
World War II and the Iron Curtain
By 1939, Nazi Germany occupied Bohemia and took control of the Skoda factory, shifting its production to aid the German war effort. The factory also suffered heavy damage from Allied bombings in 1945.
After the war, Skoda’s factory was rebuilt, but Czechoslovakia soon came under communist rule. The company was nationalised in 1948, becoming part of the state’s centrally planned economy.
Despite tight restrictions behind the Iron Curtain, Skoda began exporting cars again in 1959, launching the Felicia and the first Octavia. By the 1960s, Skoda vehicles were being sold in over 60 countries worldwide. In 1964, Skoda introduced the 1000 MB, its first mass-produced car with a rear-mounted engine.
1970s, 1980s and 1990s
The 1970s brought stylish models like the 110 R coupe and the legendary 130 RS. In the 1977 Monte Carlo Rally, the 130 RS achieved a double win, boosting Skoda’s reputation in motorsport circles.
Skoda’s next big breakthrough came in 1987, with the release of the Bertone-styled Favorit, featuring a mounted engine and front-wheel drive. By the end of 1989, the Velvet Revolution ended communist rule in Czechoslovakia, and Skoda began looking for new investment partners. This led to a major turning point in 1991, when the Volkswagen Group acquired a stake.
Under Volkswagen’s guidance, Skoda launched the first modern Octavia in 1996, marking a new era of design. By 1998, they were producing more than 400,000 vehicles per year and exporting to 70 countries.
Skoda’s journey into the 21st century
After Volkswagen took full ownership of Skoda in 2000, the brand entered a new period of growth. Here are some of the most notable milestones from the 2000s and 2010s:
- 2006: Skoda launches the compact Roomster
- 2010: The Octavia Green E Line is introduced
- 2012: Skoda celebrates 14 million vehicles produced since 1905
- 2014: Opening of a new Engine Centre in Mladá Boleslav
- 2015: Skoda Auto celebrates the 120th anniversary of its establishment
- 2019: World premiere of the Skoda Kamiq, a city SUV
Since 2019, Skoda has expanded its electric lineup, highlighted by the introduction of the all-electric SUV, the Enyaq, in 2020. Following this, the brand introduced refreshed models, featuring upgraded technology and enhanced sustainability features.
Skoda and the present day
Today, Skoda continues to thrive as one of Europe’s most trusted car brands, combining Czech craftsmanship with German engineering excellence.
Looking ahead, Skoda plans to expand its range of electric and hybrid models, continuing to innovate with eco-conscious design and advanced technology. With a focus on innovation and sustainability, its NEXT LEVEL ŠKODA Strategy 2030 aims for over 70% of European sales to be fully electric by the end of the decade.
Browse our Skoda lease deals
Here at Leasing Options, we have an impressive lineup of Skoda Lease Deals for you to explore. Whether you’re searching for business or personal car leasing, there’s a Skoda to suit every lifestyle and budget.
From compact family cars like the Kamiq to spacious SUVs like the Kodiaq, each model combines practicality, comfort, and style. And if eco-friendliness is a priority, the all-electric Enyaq delivers impressive performance with zero emissions.
Feeling inspired by the history of Skoda and ready to get started with your lease? Contact us today, and we’ll talk you through your options. Or head over to the rest of our blog to read guides on the most trusted car brands in the UK and the most common myths about car leasing.
