Skoda will cease sales in China; Volkswagen China responds

Introduction: The Volkswagen Group emphasizes that China has always been the core of the group’s global strategy.

[By/Observer Network Zhou Shengming Edited/Gao Xin]

According to reports from multiple foreign media outlets, including Reuters and Czech news site E15, Skoda, a Czech automaker under the Volkswagen Group, has announced that it will exit the Chinese market by mid-2026 due to difficulties in keeping pace with the rapid transition to electric vehicles in the Chinese market.

In a statement, Skoda said, “The company will continue to sell Skoda models in the Chinese market within the framework of cooperation with regional partners until mid-2026.”

In response, Volkswagen China told Observer Network, “Skoda has adjusted its global strategy to focus on high-growth markets such as India and ASEAN.”

Volkswagen China emphasized that after Skoda ceases sales in China, the after-sales and maintenance services for existing car owners will not be affected.

“Skoda has been in the Chinese market for nearly 20 years, earning the trust of over 3 million customers. In the future, Skoda customers in China will continue to receive comprehensive warranty and after-sales service support,” Volkswagen China stated.

According to public information, Skoda officially entered the Chinese market in 2007 and partnered with SAIC Group to incorporate the brand into the SAIC Volkswagen system. Relying on Volkswagen’s mature channels and supply chain system in China, Skoda, which focuses on cost-effectiveness and German quality, experienced a peak period from 2016 to 2018, with annual sales exceeding 300,000 units, making China its largest single market globally at one point.

As the Chinese automotive market enters a period of electrification and intelligent transformation, Skoda’s product update rhythm has been slow, and brand recognition has gradually become marginalized, leading to a continuous decline in its sales in China, sliding from the “volume leader” position within the joint venture system to a marginal position.

It is reported that although the Skoda brand is about to stop sales in China, the Volkswagen Group remains firmly committed to viewing China as the core of its global strategy. Currently, the Volkswagen Group has nearly 40 factories in China, serving over 50 million car owners.

Relying on the “In China, For China” strategy, the Volkswagen Group is vigorously promoting its new energy transition strategy in China. Currently, the Volkswagen Group has established the largest R&D center outside Germany—Volkswagen (China) Technology Co., Ltd. (VCTC) in Hefei, Anhui, to continuously advance the development of intelligent connected vehicle technology.

According to plans, the Volkswagen Group will launch more than 20 pure electric, plug-in hybrid, and extended-range models in the Chinese market by 2026, equipped with cutting-edge electrification, intelligent connected technology, and advanced driver assistance systems.

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