In 2025, Volkswagen-branded vehicles saw global deliveries fall by 1.4% compared with the prior year, driven primarily by an 8% contraction in China, the company’s largest single market by volume. North American shipments were also dampened by the imposition of U.S. import tariffs, contributing to a 0.5% drop in groupwide car deliveries across all brands, including Audi and Porsche. Executives cited continued price pressure and inventory adjustments as they navigate challenging market dynamics in key regions.

Volkswagen has entered into a multi-year collaboration with Qualcomm Technologies to develop next-generation software-defined vehicles (SDVs), targeting Level 4 autonomous capabilities and zonal computing architectures by 2027. Under the agreement, Qualcomm will supply high-performance processors and AI modules to power in-car infotainment, real-time sensor fusion and over-the-air software updates across VW’s electric vehicle lineup. The partnership underscores Volkswagen’s shift from hardware-centric platforms toward a centralized software ecosystem that promises enhanced vehicle functionality and recurring digital revenue streams.