PRAGUE: Skoda Auto expects its global markets to stabilise gradually as long as the coronavirus pandemic does not worsen significantly worsen, Volkswagen's Czech carmaker said on Friday, after reporting a 31pc drop in first-half deliveries.

"In June we were able to make significant gains compared to the previous months," Skoda's board member for sales, Alain Favey, said.

"We expect a recovery in the third quarter and anticipate a return to the previous year's level in the fourth quarter."