Will Skoda exit the Chinese market? Volkswagen China responds: Sales will continue until mid-year, with ongoing after-sales service.

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What impact will this adjustment have on Volkswagen’s electrification layout in China?

Reporter: Huang Xinxu Editor: Yu Tingting

On March 26, in response to rumors about the Skoda brand exiting the Chinese market, Volkswagen China told the “Daily Economic News” journalist: “Skoda Auto has adjusted its global strategy to focus on high-growth markets such as India and ASEAN. To ensure a smooth business transition, Skoda Auto’s sales in China will continue until mid-2026. Skoda Auto has been in the Chinese market for nearly 20 years, gaining the trust of over 3 million customers. In the future, Skoda Auto’s customers in China will continue to receive comprehensive warranty and after-sales service support.”

Image source: Skoda Auto official website

Public data shows that in 2025, the Skoda brand will produce approximately 74,000 complete vehicles at its factory in India, more than double the 33,000 units in 2024; during the same period, it will also manufacture over 85,000 complete vehicles for other brands under the Volkswagen Group.

Volkswagen China further emphasized its firm commitment to the Chinese market: “China has always been at the core of Volkswagen Group’s global strategy. The Volkswagen Group has nearly 40 factories in China and has established the largest R&D center outside of Germany—Volkswagen (China) Technology Co., Ltd. (VCTC)—to continuously advance the development of intelligent connected vehicle technology. VCTC collaborates with the Group’s software company CARIAD China, local technology partners, and joint ventures to create electrification platforms and software solutions tailored for the Chinese market, reducing product development cycles by 30% and optimizing costs by 40%. At the same time, the Volkswagen Group is continuously enriching its product matrix to better meet the needs of Chinese customers by integrating global Volkswagen standards with local innovations.”

Daily Economic News

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