Volkswagen’s Problems in China Are Serious, but Challenges in the American Market May Prove More Difficult to Solve

The Volkswagen Group faced a difficult start to 2026, recording a decline in global sales. Global demand for cars proved uneven, and the first-quarter results for the large manufacturer clearly demonstrated this.

Key Quarterly Figures

The world’s second-largest automaker ended the quarter with 2,048,900 vehicles sold versus 2,133,600 a year earlier. A significant role in this was played by a sharp reduction in presence in China, where volumes fell from 644,100 to 548,700 units.

The first quarter of 2026 was again characterized by very difficult economic and geopolitical conditions. The global automotive market as a whole contracted by the end of March.

This opinion was expressed by Volkswagen representative Marco Schubert, commenting on the results. The decline also affected North America, where sales fell by 13.3%, and in the US by a full 20.5%. Declines were also noted in other regions: Asia-Pacific (excluding China) minus 8%, Middle East and Africa minus 5.3%.

Regional Sales Dynamics of VW

Region / Q1-26 / Q1-25 / Change
Western Europe / 848,500 / 814,000 / +4.2%
Central & Eastern Europe / 135,300 / 125,800 / +7.6%
North America / 205,500 / 237,200 / -13.3%
South America / 147,900 / 138,200 / +7.0%
China / 548,700 / 644,100 / -14.8%
Rest of Asia-Pacific / 70,200 / 76,300 / -8.0%
Middle East/Africa / 92,800 / 98,000 / -5.3%
World / 2,048,900 / 2,133,600 / -4.0%

Europe acted against the general trend. In the Western European market, sales grew by 4.2%, and in Central and Eastern Europe by 7.6%. Positive dynamics are also seen in South America, where growth was 7%.

Results of the Group’s Brands

Only three brands within the Volkswagen Group managed to show growth in the first quarter. The absolute leader was Škoda, whose sales increased by 14% to 271,900 cars. Volkswagen Commercial Vehicles increased deliveries by 10.1%, and the truck brand MAN by 14.5%.

Brand / Group / Q1-26 / Q1-25 / Change
Core Group / 1,554,400 / 1,600,300 / -2.9%
Volkswagen Passenger Cars / 1,048,300 / 1,134,200 / -7.6%
Škoda / 271,900 / 238,600 / +14.0%
SEAT/CUPRA / 145,300 / 146,700 / -1.0%
Volkswagen Commercial Vehicles / 88,900 / 80,800 / +10.1%
Progressive Group / 364,900 / 388,800 / -6.1%
Audi / 360,100 / 383,400 / -6.1%
Bentley / 2,200 / 2,400 / -9.9%
Lamborghini / 2,600 / 3,000 / -11.7%
Sport Luxury Group / 61,000 / 71,500 / -14.7%
Porsche / 61,000 / 71,500 / -14.7%
Trucks Group / TRATON / 68,600 / 73,100 / -6.1%
Scania / 20,900 / 22,200 / -5.7%
MAN / 23,600 / 20,600 / +14.5%
International / 13,300 / 16,900 / -21.1%
Volkswagen Truck & Bus / 10,800 / 13,400 / -19.6%
Volkswagen Group (total) / 2,048,900 / 2,133,600 / -4.0%

At the same time, the main burden of the decline was borne by the core brand Volkswagen Passenger Cars, which lost 7.6%. Premium and sports brands significantly worsened their performance: Audi (-6.1%), Porsche (-14.7%), as well as Bentley and Lamborghini.

A similar picture is seen with the group’s electric vehicle sales, which continue to lose ground, despite generally optimistic trends in the European market. This points to deeper structural problems related to competition, especially in key regions such as China and the US. Growth in Europe and the success of individual brands, like Škoda, indicate that the group has reserves for stabilization. However, to return to global growth, it needs to find effective responses to challenges in the world’s largest and most dynamic markets, where regulatory and trade barriers are becoming increasingly high.

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