Škoda, owned by Volkswagen, will withdraw from China by mid-2026, citing challenges in adapting to the country’s fast-evolving electric vehicle market.
Once its largest market, Škoda delivered over 300,000 vehicles annually between 2016 and 2018. Sales dropped sharply to just 15,000 units last year.
The decline reflects mounting pressure from competitive local automakers, which continue to dominate China’s increasingly technology-driven automotive landscape.
Škoda confirmed it will continue limited sales through a regional partner until mid-2026, ensuring a gradual market exit.
Despite the withdrawal, the company will maintain after-sales services in China, supporting existing customers and preserving brand reliability.
Under a strategic shift, Škoda plans to expand its footprint in India and Southeast Asia, where it recorded notable growth in 2025.
The decision was first reported by Czech outlet E15, highlighting broader challenges for foreign brands operating in China.
Volkswagen faces similar headwinds, as rivals like BYD and Geely outperform legacy automakers, though Audi and Volkswagen aim to recover through new localized models.
