Skoda will not bring the second-generation Kodiaq crossover to the Chinese market, a move that could hint at a broader shift for the brand in China. Automotive News Europe reports that this decision mirrors a broader strategic realignment within the Volkswagen Group, where resources and attention in the region may be redirected toward the VW brand to strengthen its position in an intensely competitive landscape.
Industry sources suggest that Skoda’s presence in China has been waning since 2019, with recent data showing a continued downward trajectory. In August, approximately 15,300 Skoda vehicles were sold in China, a decline of about 52 percent compared with the same period a year earlier. The vehicles sold in China are manufactured through the SAIC Volkswagen Automotive joint venture, which coordinates the local production for both of the group’s brands and serves as a focal point for regional strategy and capacity decisions.
Klaus Zellmer, the head of Skoda, confirmed that the new Kodiaq will not be launched in China. While he did not formally declare an exit from the market, the statement signals that the company is prioritizing other models and markets while evaluating the brand’s long-term footprint in China. The regional business environment remains challenging, with consumer demand patterns and competitive pressure shaping the decision-making process at the executive level.
The world premiere of the second-generation Skoda Kodiaq occurred in Berlin at the start of October. The redesigned SUV brings five engine choices, offering power outputs ranging from 150 to 204 horsepower. The refresh emphasizes updated styling, improved interior quality, enhanced technology, and a more efficient powertrain lineup designed to appeal to a broader audience across continents, including Europe and North America, where Skoda is concentrating on strengthening value and reliability signals to potential buyers.
Meanwhile, in related regional conversations, automakers including Chery have discussed potential product introductions for other markets, including Russia, highlighting the ongoing reallocation of development and product plans in response to evolving trading conditions and demand forecasts. These moves illustrate how global brands are balancing regional strengths, manufacturing footprints, and brand perceptions as they navigate a dynamic global market landscape.