Volkswagen AG said global deliveries fell 4% to 2.05 million units in the first quarter, pressured by weak demand in China and tariffs in the United States as competition from local electric-vehicle makers squeezes market share.
By Bloomberg April 13, 2026, 4:42:34 PM IST (Published)
2 Min Read
The automaker blamed a contracting Chinese market and US tariffs for the decline. Shipments in China plunged about 15%, while deliveries in the US dropped roughly 20%, with EV sales especially affected in both markets. Modest gains of 4.2% in Western Europe and 7% in South America provided only limited offset.
The figures underscore a broader trend of European manufacturers losing ground in China: Mercedes‑Benz last week reported a 27% sales fall there in Q1. For Volkswagen, the challenge is acute as domestic groups like BYD and Geely roll out increasingly advanced, competitively priced models that are eating into Volkswagen’s long-standing lead. Skoda is preparing to withdraw from China amid the shift toward locally made EVs, and Porsche has seen demand soften in the luxury segment.
To better align with local tastes and boost competitiveness, Volkswagen is partnering with Chinese companies including Xpeng, while Audi has teamed with SAIC Motor to develop China-specific electric vehicles.
(Edited by : Vivek Dubey)
