(Yicai Global) Dec. 13 -- Volkswagen's Skoda brand has not decided on the need of adjusting its strategy in China, the Czech car marque responded to a rumor of its alleged exit plan.

Skoda will continue to evaluate its international positioning, adjusting its strategy to fit regional markets, including China, China News Service reported today, citing a person in charge of Skoda China.

Skoda and its Chinese partner SAIC Volkswagen Automotive, a joint venture between the German car giant and Shanghai-based SAIC Motor, are in a constant dialogue on achieving the best brand positioning in China amid the electric vehicles trend, the insider added.

Klaus Zellmer, chief executive of Skoda Auto, talked about the firm's strategy in China to German automotive magazine Automobilwoche yesterday. The Czech carmaker is considering selling vehicles in China rather than producing them there, Zellmer said, adding that the company will focus more on India.

"The competition is very intense there [in China], so we will consider, together with our Chinese JV partner, how we want to proceed," Zellmer said. "If we want to focus our energy, it's worth checking all scenarios and then deciding." 

Skoda entered China in 2005 as a brand owned and produced by SAIC Volkswagen, according to public data. But in the past year, its performance has ebbed. From January to October, sales slumped by 61 percent to 56,000 units from a year ago. In 2018, it sold as many as 340,000 units, a record high.

A withdrawal from the Chinese market would pose a negative impact on Skoda because the Chinese market tests companies' operational prowess, Huanqiu.Com reported, citing Cui Dongshu, secretary general of the China Passenger Car Association. Consequently, if Skoda exits China, it may also have trouble elsewhere, Cui suggested.

Editor: Emmi Laine, Xiao Yi