Leagas Delaney has since 2001 handled the business, which is led by its office in Prague.
The UK ad account, held by Fallon since 1999, is not affected by the pitch. The agency creates UK-specific spots, such as the recent "not your average family car" TV ad for the Octavia vRS.
MediaCom oversees the bulk of VW’s media planning and buying, including for Skoda. This is not affected.
The pitch follows another VW brand, Seat, reviewing its pan-European advertising and media duties earlier this year.
Lowe & Partners won Seat’s digital ad business from the incumbent, Grey London.
PHD landed Seat’s £14 million UK media account, while the rest of the business stayed with MediaCom.
A spokesman for Skoda declined to comment.