Volkswagen Group, which encompasses brands such as Audi, Porsche and Škoda, reported a 0.5% year-on-year decline in total vehicle deliveries for the full year 2025. While the group did not disclose exact unit totals, this represents a modest downturn compared with the previous year’s volume, which had already been pressured by global supply chain constraints. Volkswagen executives cited the combined impact of elevated import tariffs in key markets and persistent semiconductor shortages as principal factors in the slight contraction of deliveries outside China.

In China, Volkswagen Group’s largest market by volume, deliveries tumbled by 8% in 2025 versus 2024, marking the sharpest regional decline among the group’s core markets. This downturn follows an aggressive product launch by local competitors and the continuation of punitive tariffs on imported components. As local electric vehicle makers expand factory capacity and ramp up new model rollouts, Volkswagen has struggled to maintain its previous growth trajectory, resulting in material revenue headwinds in Greater China.

Industry data for calendar year 2024 revealed that Volkswagen fell to third place in China’s new-car sales rankings, ceding the top spot it held for over a decade. Geely Auto’s rapid expansion propelled it past Volkswagen, while BYD retained first place after surpassing Volkswagen in 2023. Geely’s sales rose by approximately 15% year-on-year in 2024, leveraging aggressive pricing and a broadened EV lineup, whereas Volkswagen saw its China volumes contract by 8%, underscoring the intensifying competitive landscape in the world’s largest automotive market.