Major German carmakers hit by steep China sales plunge as competition heats up
China deliveries fell 30% to 41% for Volkswagen, BMW, Mercedes-Benz and Porsche as domestic rivals gained ground, company data showed.
- Major German carmakers BMW and Volkswagen reported sharp quarterly sales declines in China as competition intensified; BMW and Mini brand sales slumped 30%, while Volkswagen group deliveries there cratered 37%.
- China's prolonged property sector downturn and economic slowdown have hurt consumer sentiment, prompting buyers to shun big-ticket purchases while a fierce price war has pushed drivers toward affordable Chinese car brands.
- Independent auto analyst Lei Xing called these declines among the steepest seen; Volkswagen group deliveries in China fell 36.6% to 424,300 vehicles, dragging its global sales down 8.6% despite growth in Europe and the Americas.
- The Wolfsburg, Germany-based auto group plans to cut its model lineup by as much as 50% following weak sales, while BMW CEO Milan Nedeljkovic intensified cost-cutting after slashing 2026 financial guidance last month.
- Consultancy AlixPartners expects light vehicle sales in China will fall about 10% for the full year, as Asia-Pacific leader Stephen Dyer warned foreign automakers must "fight for every share of market.
28 Articles
28 Articles
German carmakers are suffering some of their worst declines ever in China as Q2 sales plunge 30%-41%
Legacy German carmakers are also facing intensified competition from Chinese automakers outside of China, including in Europe, as brands like BYD make inroads overseas.
The German Volkswagen assembler, in full restructuring, reported on Friday a strong reduction in its overall sales of vehicles in the second quarter, damaged by the sharp drop in deliveries in China. Anfavea: Sales of new vehicles should reach 3 million units this year, best brand since 2014 Recue: USA gives up new tariffs for aircraft by high dependence on imports of foreign aircraft such as Embraer From April to June, the group, which has 150 …
The major German automakers – Volkswagen, Mercedes-Benz and BMW – are experiencing a significant shake-up in the Chinese market, after recording sharp declines in sales during the second quarter of 2026. The data indicates a profound change in the world's largest auto market, where local manufacturers, especially in the electric vehicle sector, are taking the lead. Volkswagen recorded the hardest hit, with a 36.6% drop in sales in China and a vo…
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