In 1936 the car company is in first place among domestic automobile manufacturers and positive reactions are coming from other countries. With the coming of the World War II and occupation, production focuses on the needs of Germany. The factory is bombed near the end of the war.
Škoda ranks second in the Monte Carlo Rally with the Popular Sport, a model later known as Monte Carlo. The Popular continues to win rallies in Africa, the Balkans and Uruguay. The model range is extended to include the mid-size model Škoda Favorit.
The Škoda Popular 995 is launched. This ‘Škoda for the people’ (‘Škoda pro lid’ in Czech) is nicknamed ‘Liduška’, a girl’s name reflecting the word ‘lidový’ (‘people’s’). Civil production is side-lined as the Second World War breaks out. The whole group is now controlled by Reichswerke Hermann Göring AG.
The automotive industry shifts to war production. In addition to weapon components, mainly various types of delivery carts, all-wheel drive vehicles and the RSO heavy tractor.
The first modernized Škoda Popular cars leave the extensively damaged Mladá Boleslav plant. The state economy is controlled by the socialist regime – the spring of 1945 sees the nationalization of large companies, including the Škoda Works in Pilsen and ASAP in Mladá Boleslav.