Volkswagen’s China Deliveries Fell 14.8% in Q1 Amid Intensifying Competition

Volkswagen Group reported its delivery results for the first quarter of 2026 on April 13.

Globally, the group delivered 2.0489 million vehicles, down 4% year-on-year. In China, deliveries totaled 548,700 units, representing a 14.8% decline.

The decline was more pronounced in the electric vehicle segment. In the first quarter, Volkswagen delivered around 200,000 BEVs globally, down 7.7% year-on-year.

In China, BEV deliveries fell to just 9,400 units, a sharp drop of about 63.8%. This decline stands out against the backdrop of rising new energy vehicle penetration in the Chinese market.

Regionally, Volkswagen faced pressure across several key markets. Deliveries in the United States fell by 20.5% in the first quarter, impacted by tariffs and demand fluctuations.

In contrast, Western Europe, Central and Eastern Europe, and South America posted relatively stable growth of 4.2%, 7.6%, and 7%, respectively, though these gains were insufficient to offset declines elsewhere.

Volkswagen attributed the slowdown in China to softer overall demand and intensifying competition.

Over the past year, price adjustments in the NEV market have continued, while domestic brands have accelerated product updates and advanced faster in intelligent features, further compressing the space for joint-venture brands.

The company has already begun implementing countermeasures. Volkswagen is advancing its “In China, for China” localization strategy, aiming to stabilize its internal combustion vehicle business while accelerating the rollout of new energy vehicles.

At its Brand Night event on April 8, Volkswagen showcased several new models, including the Anhui-based UNYX 08, SAIC Volkswagen ID. ERA 9X, and FAW-Volkswagen ID. AURA T6, covering both BEV and EREV types.

At the same time, Volkswagen is strengthening partnerships with Chinese manufacturers to enhance competitiveness.

The group has established a technology collaboration with XPeng, with the jointly developed UNYX 08 already entering mass production.

Audi is also co-developing electric vehicles with SAIC Motor to further reinforce local R&D capabilities.

According to its roadmap, Volkswagen plans to launch 13 new energy vehicles in China in 2026, spanning BEV, plug-in hybrid, and range-extended models. By 2029, that number is expected to exceed 30 models.