After JEEP withdrew from the Chinese market, the next car brand to withdraw from the Chinese market became a hot topic, and one of the most mentioned names was Skoda.
Indeed, Skoda seems to have no hope of turning the tide anymore, and it is only a matter of time before it withdraws from the Chinese market.
The "cheap Volkswagen" label doesn't work well
Skoda officially entered the Chinese market in 2006, a few years ago, ŠKODA in the domestic market was also a moment of glory, from 2016 to 2018, Skoda sales exceeded 300,000 vehicles for 3 consecutive years, and reached a peak of 340,000 vehicles in 2018, but in just 4 years, the situation took a sharp turn for the worse. In 2021, the sales volume of the Skoda brand was only 71,200 units, down 58.8% year-on-year. Skoda sold only 23,755 vehicles in the first half of this year.
In the years when Skoda sales peaked, there was a famous slogan, that is, "those who understand the public buy Skoda", at that time Volkswagen was in China, Volkswagen's belief in the German god car was still very strong, the price was high, the sales staff of the Volkswagen 4S store did not buy, some people bought, the license fee was 2000, the service fee was 3000, and the love to buy was not bought. Therefore, many people turned to choose Skoda, the same source, the same platform of brother models, the three major pieces are basically the same, the price is lower, the cost performance is higher, even the tail label of Skoda is printed with Volkswagen Skoda, Skoda has become a flat model of Volkswagen, in the case of weak domestic cars, Volkswagen is high, Skoda can also seek a certain market share in the middle.
However, as the Insurance Research Institute smashed volkswagen's safety lies, burning engine oil, gearbox death flashing, particle trap blockage and other problems accumulated, gradually crushed the volkswagen's faith myth, Volkswagen is no longer the existence of the domestic automobile market, its models began to have a large terminal discount, often preferential 3-40,000, relying on price for volume, Volkswagen although stopped the plunge in sales, but it suffered from Škoda, the big brother has reduced prices so much, how do I play? With the announcement of independence of FAW-Volkswagen's sub-brand Jetta, the label of "Cheap Volkswagen" is no longer exclusive to Skoda, and Škoda is gradually marginalized.
Skoda's self-help failed
In fact, Skoda has not failed to save itself, such as taking off the label of cheap Volkswagen and hoping to build Škoda into a "brand with temperature and personality". The price of the whole department of official reduction, to provide customers with "3 years 20% off value preservation repurchase" policy, in the design of more youthful movement, increased differentiation with the volkswagen brand, etc., are Skoda's self-help, but unfortunately, these policies have little effect.
Internally, the label is not easy to put on, it is even more difficult to tear it off, the label of "cheap public" has been deeply rooted in the minds of the Chinese people, how easy is it to take it off? Skoda's "Cheap Volkswagen" label made the brand and ruined it.
In addition, SAIC Volkswagen in the case of their own difficult to protect, is stepping up the electrification transformation, launched the Volkswagen ID series, and set up SAIC Audi to enter the high-end, in this case, Skoda has become an outcast, there is not much resource tilted to Skoda.
In terms of the external environment, since 2018, China's auto market has changed from an incremental market to a stock market, and the Matthew effect has become more and more serious. With the rise of independent brands and new car-making forces electrified models, the technical advantages of the joint venture brand have been broken, and Skoda can be said to have done nothing in the field of electrification, and under the double squeeze of joint ventures and autonomy, Skoda's situation has become more and more difficult.
The Skoda brand has a history of more than 100 years and is one of the four oldest car manufacturers in the world. However, the elderly Skoda obviously can't keep up with the trend of the times, and there is no point in continuing to die, and it is time for Škoda to retire with dignity and end his trip to China.