Volkswagen's Czech subsidiary Skoda is withdrawing from China by mid-2026. What was the brand's largest market for years is now just a shadow of its former self. The numbers are brutal.
The free fall in 7 years:
For comparison: China is a 30-million car market.
Skoda's share was recently under 0.1%. Skoda didn't have a single electric vehicle on offer in China. In a market where 54% of all new cars were already electric in 2025, that's a death sentence.
Skoda still grew globally by 12.7% to over one million vehicles in 2025.
Strategic pivot: India is the new China
Skoda CEO Klaus Zellmer is radically reordering priorities. Instead of fighting a hopeless price war against 150 competitors in China, capital is now flowing into markets with "combustion engine durability" and growth potential.
India focus: Skoda is building India into a global export hub. With locally developed models (Kushaq, Slavia), the brand achieved record numbers there in 2025.
Southeast Asia: Market entry in Vietnam and expansion in ASEAN states are to close the China gap.
Service guarantee: Existing customers in China will continue to be supplied with spare parts and maintenance via regional partners.
Retreat as strategy
The VW Group emphasizes: China remains "at the very core" of the group's strategy. Skoda is the sacrificial lamb, VW and Audi continue to invest.
Skoda joins the list: Suzuki (2018), Jeep (2022), Mitsubishi (2025). Analysts expect that by 2030, even more Western automakers will have left China. The exceptions: Tesla, Toyota, VW.
All Details & Data: SCMP, China Daily
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