Big things await Škoda Group on its domestic Czech–Slovak market, which accounts for roughly 35 percent of the company’s total revenue (in 2024, revenues reached €1.1 billion, or about CZK 27 billion). According to Novotný, the Plzeň-based manufacturer must maintain a significant market share there, as this is where it gains references and tests new products. In his view, as an employer of ten thousand people, Škoda should hold a position at home similar to that of Siemens in Germany or Alstom in France.

A so-called supertender for the Central Bohemian Region and Prague will be very important for Škoda Group. The company has been developing 22Ev electric multiple units for this tender for several years. “We are taking it very seriously. We have invested significantly in this solution. But I won’t be more specific,” he said when asked how damaging it would be if the winning operator did not choose Škoda as a supplier. The 30-year tender is being contested by České dráhy, RegioJet, and Arriva.

Despite the importance of the domestic market, Škoda Group primarily wants to strengthen exports. “We want to perceive all of Central Europe in a similar way to the Czech and Slovak markets. We consider Poland and Germany our home markets, as well as the Balkans and the Baltics,” Novotný said. Looking ahead, he also sees Ukraine as important. Beyond these markets, Škoda is interested in France, for example in a contract for the Eurotunnel. It wants to expand its market share in Italy and maintain it in Scandinavia, where it operates a plant in Otanmäki, Finland, under the name Škoda Transtech. That is why the company is resisting exclusion from the tender for trams in Helsinki. By contrast, last year it succeeded in winning a metro contract in Stockholm, Sweden.

Outside Europe, Uzbekistan is currently the number-one destination for the Plzeň-based company. This is reflected in the amount of time Novotný devotes to the Central Asian country—he has visited it several times over the past year. The reason is a contract for 30 trains, with a possible expansion to as many as 100 units. Škoda Group already succeeded in the Uzbek tender two years ago, but everything collapsed due to export financing, which, as Novotný admits, was not ideally prepared on Škoda’s side. With the help of the state insurer EGAP and the European Commission and its Global Gateway program, the chances of winning the contract have now increased, as the company has put forward an offer capable of competing with Chinese suppliers.

“After two years of negotiations, we managed to combine EU and Czech support to present the government of Uzbekistan with a comprehensive offer. Thanks to that, the solution is very realistic,” Novotný believes. If Škoda Group succeeds in the country, it does not want to stop there and plans to create a hub for the whole of Central Asia.

A potentially multi-billion-euro market is opening up to Škoda Group in India, where last year it formed a joint venture with the local industrial giant Tata Group to manufacture train components. India, with its billion-strong population—where other Czech companies such as Bonatrans, Promet, and AMiT also operate—could be very interesting for Škoda. At the beginning, however, much depends on the support of Tata, which is a key domestic partner for launching the joint venture.

In Plzeň, the company is also keeping an eye on the United States. Here, too, however, it would only be about supplying components, and according to Novotný such a step would only be considered if Škoda partnered with an American company.

Last year was also a period in which Škoda Group sought a merger with the Spanish manufacturer Talgo. This made sense, as Talgo produces high-speed trains and is very strong in Southern European and Arab markets. However, the Spanish government pushed for the key company to be taken over by a domestic firm. That ultimately happened, and shortly before Christmas the company was acquired by a consortium led by private equity firm Ekarpen with the support of the state industrial holding SEPI. Nevertheless, Novotný still sees some opportunity with Talgo. “I believe that cooperation in terms of production capacities is still possible,” he said.

When asked by HN whether Škoda Group is still considering acquisitions, Novotný was cautious. He sees organic growth and cooperation as a better path. These are advantageous, for example, in increasing the volume of tenders that Škoda Group can enter. Novotný also does not want to commit to any permanent strategic partnership. He considers project-level cooperation ideal, such as with Germany’s Siemens on the ComfortJet railcar for České dráhy or on the contract for Prague’s Metro Line D.

However, the CEO of Škoda Group sees great potential elsewhere. “A certain level of cooperation in platform development is desirable even among competitors, similar to what has happened in the automotive industry,” he explained. An example is cooperation between Mercedes, Scania, and Volvo in engineering individual platforms. This trio of European manufacturers competes more effectively with non-European firms and also has greater purchasing power for materials and components. Similar cooperation would also reduce pressure on spending for development and innovation, which at Škoda Group averages €90 million per year (about CZK 2.2 billion).

Cost savings that allow offers to be priced more competitively will be important going forward, according to Novotný. EU rail subsidies—whether from the Connecting Europe Facility (CEF), loans from the European Investment Bank, or national support schemes—have their limits. At the same time, the need to renew rolling stock is not diminishing. In Novotný’s view, banks, manufacturers, and leasing companies must change their perspective on financing these investments, which amount to tens or even hundreds of billions of crowns.

“Long-term financing of these projects must be resolved—not only during the implementation phase, which can last three years, but also during operation itself, which can span up to 30 years,” Novotný believes. According to him, banks must accept a 30-year contract of an operator that has secured a per-kilometer price through a tender as collateral for a loan. At the same time, they should take into account that a train is an asset depreciated over three decades. Such a train can operate anywhere, not only on the tendered route, which in Novotný’s view provides additional risk mitigation for financing banks.