Skoda Auto, the Czech carmaker, has declared that it is in its concluding stages of pulling out of the Russian market. The firm, a part of Volkswagen Group, revealed that the process of disengagement has been initiated and is currently in its last leg.
The company has been mulling over the idea of exiting the Russian market for quite some time now. The automobile manufacturer stated that it has taken the decision to depart from the country due to Russia’s increasingly challenging business environment. The firm did not divulge further details regarding the specifics of their withdrawal from the Russian market.
Skoda Auto has been operational in Russia for the past two decades. During this period, the firm has been able to establish its brand presence in the country, however, due to the prevailing economic downturn and consequent decrease in demand for its vehicles, the firm has been unable to maintain its foothold in the market. This has consequently forced the carmaker to take the decision to withdraw from the country.
The company has previously stated that it plans to focus its efforts on other markets, including those in Europe and China, in order to make up for the losses incurred in Russia. Furthermore, in a bid to reduce its costs in the country, the firm has also announced the termination of its employee contracts.
Skoda Auto has not yet commented on the exact timeline for their exit from Russia. However, the company stated that it is in the final stages of the withdrawal process and that it will take all necessary measures to ensure a smooth transition.
Therefore, it appears that Skoda Auto is close to concluding its operations in Russia, owing to the country’s difficult business conditions. The firm is yet to confirm the exact date for its official departure from the market.