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Škoda Auto Exits China Market Amid Declining Sales

3/26/2026

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Story summary
  • Škoda Auto, a Volkswagen Group brand, will cease car sales in China by mid-2026 due to a significant decline in demand and fierce competition from local electric vehicle manufacturers.
  • Sales in China dropped from over 341,000 vehicles in 2018 to 15,000 in 2025.
  • The Volkswagen Group will focus on more profitable markets, including India and Southeast Asia, where Skoda has grown.
  • The group will continue to support existing Skoda owners with after-sales services in China.