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Stock clearance boosts market share

A marketing tactic aimed at clearing stocks of an out-going range has been so successful that Skoda is now using it to boost sales of other models.

No-VAT deals on late-version Octavias helped the Czech firm drive to a record UK market share of 1.74% last year, with more than 37,000 total registrations. Figures for January suggest the rate of showroom trade has stabilised, said brand director Robert Hazelwood.

“Most of our 126-strong network has taken out unnecessary costs that have included some redundancies and we have helped by reducing demonstrator numbers, increasing discounts and cutting holding costs. Since we arranged to base our central stock in Germany, we have also enjoyed significant cost benefits in vehicle movements.

“We’re addressing the effects of the recession and 23% lower sales by being pragmatic across the board and making sure our dealers offer good customer services.

“We are letting our dealers know how much money they have in every car so they can trade in confidence and we’ve given them another fillip by extending our no-VAT offer on the run-out Octavia to the Fabia and Roomster models.

“It is easy to communicate and builds on our strengths in a tough market – and we’re already seeing a significant increase in orders,” he said.

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