Volkswagen reported a 1.4% year-on-year decline in deliveries of Volkswagen-badged vehicles in 2025, reflecting persistent headwinds in its largest car market. In China, where the company has historically relied on robust volume growth, deliveries fell by roughly 8%, pressured by slowing consumer demand and intensifying local competition. In North America, elevated U.S. import tariffs on European-built cars contributed to softer order books, with dealers reporting extended lead times and muted showroom traffic. Volkswagen’s executive board has cited these factors as primary drivers of the overall deliveries shortfall.

Across all Volkswagen Group brands—including Audi, Porsche and Skoda—overall deliveries dipped 0.5% in 2025 versus the prior year. The decline was entirely attributable to performance in Greater China, where combined shipments to dealers contracted by 8%. In Europe, Volkswagen posted a modest 2% increase in deliveries, supported by sustained demand for electric vehicles. The group’s global electric vehicle (EV) fleet grew by 25% year-on-year, helping to offset part of the decline in combustion-engine volumes and underpinning VWAGY’s transition toward higher-margin, software-enabled models.

Industry data for 2025 show Volkswagen slipping to third place in China passenger-vehicle sales, ending its decade-long leadership in the world’s largest auto market. Local rival Geely Auto overtook Volkswagen for the first time, buoyed by strong uptake of its Lynk & Co and Zeekr electric models, while BYD extended its position at the top with record deliveries exceeding 3 million units. Volkswagen’s China sales totaled 2.1 million vehicles in 2025, down from 2.3 million in 2024, prompting management to accelerate localization of production and deepen joint-venture partnerships to regain market share.