Volkswagen Admits Defeat And Pulls Skoda From China

Skoda’s spectacular downfall in China needs to be studied. For many years, it was the company’s largest market, but sales began to slip toward the end of the last decade. Amid fierce competition driven by the meteoric rise of local automakers, the Volkswagen Group is pulling its Czech brand out of the world’s biggest car market. Local sales will end by the middle of the year, according to Automotive News.

The sales figures over the past few years paint a grim picture of Skoda's decline in China. Demand peaked in 2018, when 341,000 cars were delivered to customers. In 2025, deliveries plunged to only 15,000 units. That’s nearly a 96% drop in seven years, underscoring how traditional brands are struggling.

Even though it has been on a slippery slope in China this decade, Skoda has managed to offset those massive losses by growing in other parts of the world. In 2025, it became the third best-selling car brand in Europe for the first time. Demand in India reached record levels, while the brand also gained momentum in North Africa and Turkey.

Globally, Skoda grew by 12.7 percent last year, reaching 1,043,900 units; its best result in six years. It is preparing to launch a new entry-level EV, the subcompact Epiq, before introducing the much larger, seven-seat Peaq later in the year. The Vision O concept hinted at a large electric wagon, but it won’t go on sale anytime soon.