Volkswagen AG has entered into a multi–year collaboration with Qualcomm Technologies to accelerate the rollout of software-defined vehicles (SDVs) across its global portfolio. Under the agreement, Volkswagen will integrate Qualcomm’s Snapdragon Digital Chassis platform, which includes compute, telematics and infotainment solutions, into its next-generation models. The partnership targets Level 4 autonomous driving capabilities by 2027, leveraging zonal electrical architecture that consolidates multiple vehicle domains onto high-performance central and edge computers. Volkswagen expects the joint solution to reduce electronic control units by up to 60% per vehicle, streamline over-the-air software updates and enable advanced AI-driven in-car services such as real-time navigation, voice assistants and predictive maintenance alerts.

In its year-end report, Volkswagen AG disclosed a slight decrease in global vehicle deliveries, reporting a 0.5% drop compared with the previous year. Total shipments across all brands under the Volkswagen Group umbrella—including Audi, Porsche and Škoda—reached 9.96 million units in 2025, down from just over 10 million in 2024. The contraction primarily reflected softer demand in established European markets and supply chain disruptions related to semiconductor shortages in the first half of the year. Despite these headwinds, Volkswagen highlighted resilient performance in North America, where deliveries rose 3%, and in Latin America, which recorded a 2% uptick, underpinning the company’s strategic focus on market diversification.

Volkswagen’s market share in China fell sharply in 2025, with deliveries down 8% year-on-year to 3.2 million vehicles. This decline saw the Group drop from second to third place in China’s passenger car sales rankings, as fast-growing domestic players Geely Auto and BYD expanded their combined volume by more than 20%. Volkswagen cited pricing pressure from local brands, higher import tariffs on certain models and shifting consumer preferences toward electric vehicles as key factors. To counteract the slide, Volkswagen plans to introduce 10 new BEV models in China over the next two years, increase local production capacity by 15% and roll out tailored financing packages aimed at younger urban buyers.