BERLIN, (Reuters) – Czech carmaker Skoda, which is owned by Volkswagen , will withdraw from the Chinese market by mid-2026 after struggling to keep up in the region’s rapid shift towards electric vehicles, the company said on Wednesday.
After serving as Skoda’s largest market for years with deliveries of over 300,000 between 2016 and 2018, sales in China dwindled to just 15,000 last year, as foreign automakers face tough competition from local brands.
“The company will continue to sell Skoda models in the Chinese market in collaboration with a regional partner until mid-2026,” the company said in a statement.
Under a strategic repositioning, Skoda said it intends to focus on strengthening the brand’s presence in India and South-East Asia, where it saw growth in 2025.
Czech news website E15 was first to report on the withdrawal.
After-sales services for Skoda vehicles will continue to be provided in China, Skoda said.
Parent Volkswagen has had a tough few years in China, where local brands BYD and Geely have overtaken the German company in terms of sales, ending years of dominance as legacy carmakers struggle to keep up in a tech-driven EV market.
Unlike Skoda, Volkswagen and its subsidiary Audi hope to win back lost ground in China with a raft of product launches and increasingly localised production.
Reporting by Jason Hovet and Rachel More, Editing by Madeline Chambers
