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For Volkswagen, China is one of its most important markets. However, recent market data gives cause for concern. (File photo)
Keystone
Volkswagen is bracing for a difficult year in China. The German automaker expects a further decline in the new car market and is scaling back its forecasts. At the same time, the company is banking on rising sales of electric cars.
Volkswagen has a subdued outlook on the development of the Chinese vehicle market for the rest of the year. “The Chinese automotive market is under increasing pressure,” the Volkswagen Group announced in Beijing.
Furthermore, it is not expected that the market will recover over the course of the year or that losses will be recouped. The Wolfsburg-based company anticipates that the overall market for new vehicles will decline to below 21 million units. “Volkswagen Group China cannot escape this trend. We are adjusting our plans accordingly,” stated Germany’s largest automaker. No further details regarding the adjustments were provided.
Previously, China’s Passenger Car Association (CPCA) had reported a 19.5 percent decline in sales for the first five months of this year compared to the same period last year. Volkswagen cited changes in subsidy and tax policies, rising fuel prices, and ongoing price competition as reasons for the market trend, noting that these factors had impacted consumer confidence and weighed on overall demand.
At the same time, the group remains optimistic. “Our sales of fully electric vehicles continue to grow steadily,” the company announced, as it prepares to host its annual general meeting this Thursday. With strategic realignments and a model offensive for electric and plug-in hybrid vehicles, the company is “well-positioned for the challenging market environment,” it added.
16.06.2026, 03:23
16.06.2026, 07:38
