VW production in China: market share is declining. Photo: Volkswagen Group
Berlin. The weakness in China and the USA has caused Europe’s largest car manufacturer Volkswagen to experience a decline in sales of its core brand in 2025. With 4.73 million VW brand vehicles, the car manufacturer from Wolfsburg sold 1.4 percent fewer cars than in the previous year, according to information on Tuesday. Sales boss Martin Sander expressed reservations about the current year. “We also expect an overall challenging market environment in 2026,” he said.
At the same time, he referred to numerous new models. More than ten new electrified vehicles would come onto the market in China alone. Volkswagen has lost the connection there, particularly when it comes to electric cars, and after years of market dominance is now only the third largest car manufacturer in the People’s Republic. In 2025, the brand’s sales in China fell by 8.4 percent.
VW boss Oliver Blume has agreed to cooperate with the Chinese provider Xpeng in order to get back in touch. The first cars are expected to come onto the market this year.
In the USA it also fell by 8.2 percent. US President Donald Trump’s tariffs, which make car imports more expensive, also play a role. Although Volkswagen has a factory in the USA, it imports important models such as the Tiguan and the Golf from Mexico and Europe. In addition, Trump let the subsidy for electric cars expire at the end of September, which caused demand for the ID.4 built in the USA to collapse.
Things went much better in Europe, where sales increased by 5.1 percent. Volkswagen thus maintained its position as market leader and was even able to expand its position in its home market of Germany. Electric cars played an important role, especially the ID.7 sedan, which is built in Emden. Next year, Volkswagen will bring the ID.Polo, a vehicle in the price range of around 25,000 euros, onto the market and hopes to gain further momentum from this.