Volkswagen’s Skoda will stop vehicle sales in China by the end of this year
Skoda, part of volkswagen The group is set to exit the Chinese market by mid-2026 after a prolonged decline in sales in what was once its biggest market, as it struggles to keep pace with the shift towards electric vehicles in the country. The company said it will continue selling 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 growing competition from domestic carmakers focused on electric mobility. The return is part of a broader strategy to focus on India and South-East Asia, where the company has recorded growth and sees strong expansion potential in 2025.
The move reflects broader challenges for Volkswagen Group in China, where local makers like BYD and Geely have overtaken foreign brands in sales due to 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 localization. The development was first reported by Czech news website E15 and highlights the changing dynamics in the global auto industry as companies adapt to changing technology and market conditions.