Volkswagen Admits Defeat And Pulls Skoda From China

The drastic decision is a consequence of collapsing sales.

2021 Skoda Octavia Pro (for China)

Photo by: Skoda

Adrian Padeanu

By: Adrian Padeanu

Mar 26, at 5:03am ET

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THE BREAKDOWN

Skoda will stop selling cars in China by the middle of the year.
It sold only 15,000 cars in 2025.
China was Skoda's largest market for many years.

Škoda’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.

Year Sales in China 2025 15,000 2024 17,500 2023 22,800 2022 44,600 2021 71,200 2020 173,000 2019 282,000 2018 341,000 2017 325,000 2016 317,100

Photo by: Skoda

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.

2021 Skoda Octavia Pro (for China)

Motor1's Take: From hero to zero, Skoda has fallen victim to the relentless rise of Chinese carmakers and their aggressive pricing strategies. Although its parent company is waving the white flag, it continues to invest in the core VW brand by strengthening partnerships with local players.

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As Skoda exits China, the VW Group is introducing a new entry in the luxury segment. Separate from the traditional Audi brand, AUDI is a joint venture with SAIC, but early signs suggest it is already struggling.

How many legacy carmakers will survive in China over the next 10 to 20 years remains to be seen, but Skoda’s withdrawal shows just how quickly even big names can lose ground there.

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