Skoda will exit the Chinese market by mid-2026, less than eight years after it reached – sorry – its sales peak in the country. In that time, Skoda’s sales in China have risen from more than a quarter of its global total to a rounding error.
In a statement about it ReutersThe company said it would “continue to sell Skoda models in the Chinese market in collaboration with a regional partner until mid-2026.” The automaker will continue to honor warranties and provide after-sales service in the country after halting new car sales.
Skoda told the news agency that the company would shift its focus to expanding its position in Southeast Asian markets.
Like many other foreign automakers operating in China, Skoda has been unable to keep up with local brands as buyers quickly switched to electric vehicles and plug-in hybrids.
As recently as 2020, China was the largest single market for Skoda, surpassing both Germany, the home of Volkswagen Group’s parent company, and the Czech Republic, its home base.
Sales in China peaked in 2018 with 341,000 Skodas sold and the country accounted for 27.2 percent of the company’s global sales. Since then, the decline has been steep: only 15,000 cars were sold last year, accounting for 1.4 percent of the brand’s total sales.
Skoda’s Chinese range currently includes the Kamiq, Kamiq GT, Karoq, Kodiaq, Kodiaq GT, Octavia Pro and Superb models. The brand’s electric vehicles, sold in Europe, Australia and elsewhere, are nowhere to be seen.
Skoda entered the Chinese market in 2005, but its real breakthrough only came in 2007, when the brand began local production of the Octavia through the SAIC Volkswagen joint venture.
Accordingly Car news ChinaAt the brand’s peak, there were 500 standalone dealers across the country. By last year, most of these dealers had disappeared or been consolidated into SAIC-Volkswagen showrooms, while the Skoda brand moved to a “shop-in-shop” format.
Although Skoda will soon disappear from the Chinese new car landscape, the Volkswagen Group is investing heavily in its Volkswagen and Audi brands. Both brands will leverage local partners to quickly expand their EV and range-extended EV offerings to include China-specific models.
Skoda is not the first foreign brand to leave China, with Mitsubishi, Fiat, DS and Acura already on the market.
Others, such as Jeep and soon Land Rover, continue to operate in the country but have stopped local production and switched back to selling imported vehicles.
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