Skoda, part of the Volkswagen Group, will exit the Chinese market by mid-2026 after a prolonged decline in sales in what was once its largest market, as it struggles to keep pace with the country’s shift to electric vehicles. The company said it will continue sales through a regional partner until mid-2026 and will provide after-sales services to existing customers during and after the transition.China was Skoda’s top market between 2016 and 2018, with annual deliveries exceeding 300,000 units, but volumes fell to about 15,000 units last year amid rising competition from domestic carmakers focused on electric mobility. The withdrawal is part of a broader strategy to redirect focus to India and South-East Asia, where the company reported growth in 2025 and sees stronger expansion potential.
The move reflects wider challenges for Volkswagen Group in China, where local manufacturers such as BYD and Geely have overtaken foreign brands in sales, driven by advances in EVs and technology. Unlike Skoda, Volkswagen and its subsidiary Audi plan to rebuild their presence in China through new product launches and increased localisation. The development was first reported by Czech news website E15 and highlights shifting dynamics in the global auto industry as companies adapt to changing technology and market conditions.
