Skoda aims to pass Ford and Toyota to be among Europe's top five best-selling brands by 2030, CEO Thomas Schaefer said.
The target is part of Skoda's Strategy 2030 plan and will be achieved by "further strengthening the brand's position in the entry-level segments," Schaefer told journalists during an online presentation on Thursday.
Schaefer referenced the new Fabia small car which goes on sale later this year with an entry price of below 14,000 euros ($16,750).
Skoda is currently Europe's No. 8 brand by unit sales based on 2020 data from industry association ACEA, which counts registrations in the European Union, EFTA and the UK markets.
Skoda would have to overtake Ford and Toyota to reach the top five. Volkswagen brand was the top-selling marque last year, followed by Renault, Peugeot, Mercedes-Benz and BMW.
Skoda sold 643,019 cars in Europe last year. Its sales fell during the pandemic but the automaker increased its market share to 5.4 percent from 4.8 percent the year before.
Skoda was the second best-selling brand in Volkswagen Group's brand portfolio across Europe over the year, second only to the group's namesake passenger-car brand.
In the first five months of 2021, Skoda has already overtaken Ford, Mercedes and BMW to reach fifth place behind Toyota, ACEA figures show.
Skoda sales have been boosted by the rollout of the new-generation Octavia compact, the brand's best-selling car, which began sales in 2020.
The brand is also rolling out sales of the Enyaq full-electric compact SUV, its first model based on VW's MEB platform.
Schaefer said the company was having trouble in fulfilling orders. "We have a significant supply shortage [of Enyaqs], he said.
Schaefer warned that Skoda will have to shut its Czech plants for a week due to the ongoing shortage of microchips, describing the need to halt output as a "disaster" for the company.
"Our stock is at an all-time low. There is nothing we can do. We have to hope it calms down in the second half of the year," he said.
Skoda, the Czech Republic's biggest exporter, delivered 1.05 million cars globally in 2020, a 19 percent year-on-year fall amid the coronavirus pandemic, but above the 1 million mark for the seventh straight year.