Czech automaker Skoda, owned by Volkswagen, announced it will exit the Chinese market by mid-2026, after struggling to compete amid China’s fast-moving shift to electric vehicles.

Once Skoda’s largest market, with over 300,000 deliveries between 2016 and 2018, sales fell to just 15,000 last year due to fierce competition from local brands.

The company will continue selling vehicles in China through a regional partner until its withdrawal, and after-sales services will remain available.

As part of a strategic refocus, Skoda plans to expand in India and Southeast Asia, where it saw growth in 2025.

Volkswagen and its Audi subsidiary, by contrast, aim to regain market share in China with new launches and more localised production, even as rivals like BYD and Geely overtake them in the EV sector.