VW deliveries post steepest drop since 2022 as China sales plunge

Volkswagen Group reported an 8.6% decline in global deliveries in the second quarter of 2026, marking its steepest quarterly drop since mid-2022, as a deepening sales collapse in China offset gains in North America and Europe.

China Freefall Deepens

Deliveries in China, the automaker's largest single market, plunged 36.6% during the quarter as mounting competition from domestic electric vehicle makers continued to erode the German giant's once-dominant position. The core Volkswagen brand was hit particularly hard, with deliveries of slightly over 1 million vehicles in Q2 — a drop of 14% from a year earlier.reuters+3

The New York Times reported earlier this week that Volkswagen is cutting production as sales in China have fallen sharply for several years, with fears of plant closures growing. For the first half of 2026, the group delivered 4.1 million vehicles globally.volkswagen-group+1

BMW Bayerische Motoren Werke AG reported similar headwinds on Friday, with global vehicle deliveries declining 4.9% in Q2, dragged down by a nearly 30% plunge in China sales, according to Reuters. Bloomberg reported that both German automakers are struggling with a worsening slump in a market where domestic brands like BYD have rapidly gained share.reuters+1

Bright Spots in North America

While the picture in Asia darkened, Volkswagen's North American operations grew deliveries by 7.7% in the quarter. Volkswagen of America posted particularly strong results, with overall sales up 24.9% year-over-year, led by a 152.5% surge in Tiguan compact crossover sales and 121.5% growth for the ID. Buzz electric van. Western Europe also showed modest improvement, with deliveries rising 1.8%.money.usnews+3

Structural Challenges Ahead

The results underscore the structural challenge facing European automakers in China, where a price war driven by local EV makers has compressed margins and eroded market share for foreign brands. Volkswagen has been working to cut overhead costs — reducing them by one billion euros in the first quarter alone — while trying to accelerate its own electric transformation. The group's European order book for all-electric vehicles rose by more than 50% in the first half, though BEV deliveries in Q2 still fell 4.2% year-over-year to 238,400 units.electrive+2