Skoda will be leaving the Chinese market by the middle of 2026, less than eight years after hitting its sales peaq — sorry — in the country. In that time Skoda’s sales in China have gone from more than a quarter of its global total to a rounding error.
In a statement to Reuters, the company said it “will continue to sell Skoda models in the Chinese market in collaboration with a regional partner until mid-2026.” The automaker will continue to honour warranties and offer after-sales service in the country after new vehicle sales have stopped.
Skoda told the news agency it will shift its focus to growing its position in Southeast Asian markets.
Like many other foreign automakers that operate in China, Skoda has been unable to keep up with local marques as buyers shifted quickly to EVs and plug-in hybrids.
As recently as 2020, China was Skoda’s largest single market, outperforming both Germany, home of its Volkswagen Group parent, and Czechia, its home base.
Sales in China peaked in 2018 when 341,000 Skodas were sold, and the country accounted for 27.2 per cent of the company’s global sales. Since then, the fall has been precipitous, with just 15,000 cars sold last year, or 1.4 per cent of the brand’s total sales.
Currently Skoda’s Chinese range includes the Kamiq, Kamiq GT, Karoq, Kodiaq, Kodiaq GT, Octavia Pro, and Superb. The brand’s EVs, which are sold in Europe, Australia and elsewhere, are nowhere to be seen.
Skoda entered the Chinese market in 2005, but things didn’t really take off until the brand began producing the Octavia locally in 2007 through the SAIC Volkswagen joint venture.
According to Car News China, at the brand’s height it had 500 standalone dealerships throughout the country. By last year most of these dealerships were gone, or folded into SAIC Volkswagen showrooms with the Skoda brand relegated to a “shop-in-shop” format.
Although Skoda will soon be gone from the Chinese new car landscape, the Volkswagen Group is investing heavily into its Volkswagen and Audi brands. Both marques will lean on local partners to rapidly expand their EV and range-extended EV offerings with China-specific models.
Skoda isn’t the first foreign brand to exit China, with Mitsubishi, Fiat, DS and Acura already out the door.
Others, like Jeep and soon Land Rover, continue to operate in the country, but have ceased local manufacturing and have reverted to selling imported vehicles.