The competition is very fierce in China, “so we will study with our Chinese joint venture partner how to proceed and if we want to focus our energy, it is worth looking at all scenarios and then making a decision,” the weekly Automobil-Voche magazine quoted Klaus Zellmer, CEO of the company, as saying.
He added that the company could consider simply selling the cars in China rather than producing them there as well.
He pointed out that “Skoda” is looking to focus more now in India.
Volkswagen told Reuters that Skoda is constantly evaluating its position in international markets and working to adapt to local developments as a normal procedure.
She added, “There are no decisions yet on possible modifications to our strategy.”
The largest auto industry in China had expected that car sales in China would rise by 3 percent to reach 27.6 million cars in 2023.
She added that she expects the economic recovery in the world’s second-largest economy to offset the negatives the country is currently suffering from, such as the rise in COVID-19 infections.
Of the total sales, sales of electric power vehicles are likely to grow by 35 percent to reach 9 million units next year, Xu Haidong, deputy chief engineer of the China Association of Auto Manufacturers, said in an online briefing Friday.
The association predicted that the sector would be exposed to pressures next year, including a slowdown in consumer confidence recovery and a decline that can be expected after the government stimulus expires at the end of 2022.
The China Passenger Car Association said, Thursday, that passenger car sales in China amounted to 1.67 million units in November, down 9.5 percent year on year.
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