Skoda Plans Leaving Chinese Market For India


Skoda is exiting the Chinese car market. The company plans to focus on the Indian market.

Skoda cars have garnered a huge fan following among Indian customers. It is owned by the Volkswagen group. Now, the Czech automobile manufacturer is planning to double down its efforts in India. Recent reports suggest that the company is planning to leave the Chinese market next year. This is quite surprising since China is the largest auto market in the world. The new movie is said to be the result of fierce competition in the country. As a result, Skoda will now focus on other lucrative regions like India. Let’s take a closer look at the recent developments.

New Development Yet to be Confirmed

While Skoda has not confirmed the new development and dates, a statement by the company’s CEO hints at the upcoming moves. “The competition is very intense there, so we will consider, together with our Chinese joint venture partner, how we want to proceed. If we want to focus our energy, it’s worth checking all scenarios and then deciding,” said Klaus Zellmer, Skoda’s CEO. We will have to wait and see if Skoda opts to leave or minimize its position in the Chinese market. However, Skoda will still work to enhance the Volkswagen brand’s presence in China.

China has been Skoda’s largest market. It represented more than 30% of the Czech automaker’s worldwide sales. However, the sales numbers have been decreasing in the last few years. In 2021, China accounted for 13% of the company’s worldwide sales. This number is expected to go even lower this year. In the first three quarters of 2022, Skoda sales have decreased by 22% globally and by 31% in China. Currently, Skoda offers many vehicles which are specially designed for the Chinese market. This includes GT-branded versions of the Kodiaq and Kamiq. It also offers an Octavia model with an extended wheelbase.

Skoda Has Expansion Plans in Vietnam

in China, all Skoda models are manufactured in joint venture factories which are operated by VW Group. This accounts for a huge investment for the company. Recent reports suggest that the exit from China will result in the funds being diverted to other parts of the world including India. Interestingly, Skoda is also in charge of the VW Group’s activities in India. The popular car manufacturer also has expansion plans for Vietnam. We will have to wait and see if the new moves eventually happen or not. However, it seems like good news for Indian customers.