Volkswagen sales drop sharply in 2026

Volkswagen reported a significant decline in sales for the third quarter of 2026, with a double-digit drop in global deliveries between July and September. The company delivered 1.89 million new cars worldwide during this period, representing a 14% decline compared to the third quarter of 2025.

Worst decline in four years

This marks the largest decline recorded by Volkswagen in the past four years, with sales having fallen 22% in the second quarter of 2022. The company is struggling to maintain its market position amid shifting consumer preferences and competition.

China becomes a major concern

The decline is particularly pronounced in China, where Volkswagen saw its deliveries drop by 39% during the third quarter. For the first nine months of the year, the decline reached 30% compared to the same period in 2025. China is becoming an increasing problem for the group, with the market alone dragging down global performance.

Only two regions show growth

Only two markets showed slight growth. Sales increased by 1.4% in Central and Eastern Europe, while all other regions experienced declines. Western Europe saw a 2.8% drop, compared to a 5.8% decline in North America. Electric vehicle sales also declined globally by 5%, despite a 20% growth in Europe, aided by the new Electric Urban Car Family (Volkswagen ID. Polo et ID. Cross, Cupra Raval, Skoda Epiq).

Other automakers face similar issues

Volkswagen is not an isolated case, as other automakers have also experienced slowed sales or declines in China. Western brands are facing increasingly tough competition from local players, including BYD, XPeng, and Chery. Mercedes and Porsche are also in difficulty on the Chinese market.

Volkswagen tries to adapt in China

To address the challenges in China, Volkswagen has created several joint ventures, notably with SAIC and FAW, to benefit from more advanced technologies and align with the expectations of Chinese customers. However, this has not been sufficient to reverse the sales decline. As a result, Volkswagen–SAIC has decided to export its Lamando L, a sedan produced in China, to Mexico to maintain sufficient production volumes at its local sites.