Skoda planning to pull out of China soon, will focus more on India

Czech carmaker Skoda Auto, a part of Volkswagen, is likely to leave China and will take the final decision next year, CEO Klaus Zellmer was quoted as saying by the weekly 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 reportedly said. "If we want to focus our energy, it's worth checking all scenarios and then deciding."

Zellmer is planning to simply sell the cars in China rather than producing them there. He added that Skoda wants to focus more in India at the moment.

Volkswagen told Reuters that for Skoda it was normal business procedure to continuously check its position in international markets. They then accordingly adapt to local developments.

"There have been no decisions so far on possible modifications in our strategy," the company said.

Reports suggest that several companies have left China in the past few years owing to tight Covid curbs in the country.According to a European Chamber of Commerce survey, 50 per cent of western firms reported that operations in Chinahad become more politicised in 2021 as compared to earlier years.

Now, China has loosened several restrictions and the economy will apparently open up by some time next year.

(With inputs from agencies)

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