Skoda, the Czech carmaker owned by Volkswagen Group, will stop sales in China by mid-2026 as it shifts focus to markets including India and Southeast Asia, confirmed Volkswagen Group China on Thursday.

The withdrawal follows a prolonged decline in sales. Skoda's annual deliveries in China exceeded 300,000 units between 2016 and 2018, but have since fallen sharply, dropping to about 15,000 vehicles in 2025.

The move underscores the challenges faced by foreign mass-market brands in China, where domestic automakers have rapidly gained share, particularly in electric vehicles.

"For Skoda customers in China, warranty and after-sales services will remain fully available," said Volkswagen Group China.

The brand has operated in China for nearly two decades, delivering more than 3 million vehicles over that period.

Despite Skoda's exit, Volkswagen Group China said the country remains central to its global strategy.

The German automaker remains the largest foreign car group in China, with nearly 40 plants, around 50 million customers, and its biggest research and development hub outside Germany located in the country.