- Skoda's deliveries plunged to just 15,000 vehicles last year, down from a historical peak of over 300,000 in earlier years.
- Skoda said it intends to focus on strengthening the brand's presence in India and Southeast Asian markets.
Czech carmaker Skoda, owned by Volkswagen, will officially exit China by mid-year, underscoring the challenges foreign brands face amid fierce competition in the world's largest auto market.
Struggling to keep pace with China's rapid shift toward electric vehicles (EVs), Skoda will withdraw from the market by mid-2026, Reuters reported Wednesday, citing the company.
China served as Skoda's largest single market globally for years, with annual deliveries exceeding 300,000 vehicles between 2016 and 2018, the report noted.
However, as foreign automakers face intense competition from rising local brands, Skoda's sales dwindled to just 15,000 units last year.
"The company will continue to sell Skoda models in the Chinese market in collaboration with a regional partner until mid-2026," Skoda said in a statement.
After-sales services for Skoda vehicles will continue to be provided in China, it said.
Under a strategic repositioning aimed at optimizing its global operations, Skoda said it intends to focus on strengthening its presence in India and Southeast Asia.
The automaker already saw sales growth in these emerging Asian markets in 2025.
Parent company Volkswagen has endured a tough few years in China, as legacy automakers continue to struggle in a tech-driven EV market.
Local brands BYD and Geely have overtaken the German company in overall sales, ending its years-long dominance in the country.
Unlike Skoda's full retreat, Volkswagen and its luxury subsidiary Audi hope to win back lost ground in China through a raft of new product launches.
The ID.UNYX 08, the first jointly developed model between Volkswagen and Xpeng, has already entered mass production in China.
Yesterday, Audi began pre-sales in China for the A6L e-tron, a mid- to large-size luxury electric sedan designed to boost its EV sales in the world's biggest auto market.
