Photo: VCG

Czech carmaker Skoda Auto, part of Volkswagen, told the Global Times on Monday that the alleged adjustment by the media to its China market strategy has not yet been decided, in response to reports that Skoda is considering withdrawing from China. 

The company said it continuously reviews its position in international markets.

The remarks came after Reuters reported that the Skoda Auto is considering withdrawing from Chinese market and will make a final decision next year, according to CEO Klaus Zellmer, who was quoted by weekly auto magazine Automobilwoche.

"The competition is very intense there, so we will consider, together with our Chinese joint venture partner, how we want to proceed," Zellmer was quoted as saying. "If we want to focus our energy, it's worth checking all scenarios and then deciding."

Skoda Auto continuously reviews its position in international markets as part of its normal business processes and adapts its strategies to local developments, and this also applies to China, the company said. To this end, "we are in regular, constructive exchange with our joint venture partner SAIC Volkswagen to examine how we can best position the brand in the Chinese market", against the backdrop of China's transformation towards fully networked electric mobility, Skoda Auto told the Global Times.

Whether adjustments to our strategies are necessary has not yet been decided, it added. 

As one of the oldest auto brands, Skoda has a history which stretches back 120 years. The firm first entered the Chinese market in 2005. Skoda's sales volume exceeded 300,000 for three consecutive years from 2016 to 2018, but the annual sales were constantly halved year by year, to 282,000, 173,000 and 71,200 respectively from 2019 to 2021.

From January to October this year, Skoda's cumulative sales volume stood at 38,000 vehicles, a year-on-year decrease of 61.32 percent, according to guancha.cn.

Global Times