In the latest news, Skoda has announced that it is planning on exiting from the Chinese market to focus more on countries like India. There has been no concrete decision on this yet, but Skoda CEO Klauss Zellmer has mentioned that their position in China will be closely evaluated and they might just exit the market. But why is this happening? Let’s talk about Skoda leaving China in a bit more detail.
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Why is Skoda leaving China?
Well, China is the world’s largest automobile market. Up until recent times, the Chinese market would comprise 30% of Skoda’s global sales. However, this number has fallen to just 13% now. Moreover, Skoda’s sales in countries like India have been growing with new launches. The competition in the Chinese market is too fierce, according to Skoda’s CEO and they want to reconsider whether it is worth staying there. This is the primary reason behind Skoda leaving China.
With this, Skoda doesn’t plan on completely stopping operations in China. Skoda leaving China simply means that they will stop producing cars there. The sales would still continue.
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Why India?
The Indian market is always open for investments. New Skoda cars like the Kushaq and the Slavia are being produced in India on the MQB-A0-IN platform. These cars are also being exported. This platform has been specifically designed for India and buyers are more than satisfied with these cars. Even VW has used this platform to house the Taigun and the Vitrus. Skoda leaving China to produce more cars in India makes more sense because even since Covid hit, restrictions in China have increased significantly. It is expected that the markets will reopen like before next year, but it still is quite unpredictable.
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How does Skoda leaving China benefit India?
Well, car prices may go down slightly, but that is something that we will have to wait and watch. In the long run, Skoda leaving China will result in more cars from the Czech carmaker in India. With Europe’s emphasis on EVs, Skoda will definitely shift their focus to the greener side. The Enyaq iV EV has already been spotted in India, and other EVs may follow soon.
Do you think that Skoda leaving China is good news for India? Let us know in the comments below! Also, what is your favorite Skoda car?
