Deliveries of Volkswagen-branded vehicles fell 1.4% year-on-year in 2025, driven by persistent weakness in China and elevated import tariffs in the United States. The brand reported 4.67 million units delivered globally, with volume in North America down 2.2% after U.S. import duties on European-built SUVs reduced consumer uptake. Executives noted that inventory restocking in key European markets and the ramp-up of new electric models helped offset steeper declines in Asia and North America but were insufficient to prevent an overall drop in volume.

Across the Volkswagen Group’s full brand portfolio, deliveries edged down 0.5% in 2025 to 9.81 million vehicles. China sales fell 8.0% to 3.12 million units, marking the second consecutive year of double-digit declines for VW-branded models amid intensifying local competition and persistent market challenges. Group executives cited an 11-point market share reduction in the world’s largest auto market, where Volkswagen was surpassed by Geely Auto in 2025, pushing VWAGY to third place behind BYD and geely’s expanding portfolio.

Volkswagen AG signed a strategic agreement with Qualcomm Technologies to supply its next-generation Snapdragon Digital Chassis for Volkswagen’s software-defined vehicles (SDVs). The partnership will enable Level 4 automated driving capabilities, zonal electrical architecture and AI-powered infotainment across VWAGY brands by 2027. The deal encompasses 5G connectivity modules, advanced driver assistance systems and centralized vehicle computing units, positioning Volkswagen to compete more effectively with Tesla and other technology-focused rivals in the growing market for smart, electric vehicles.