Volkswagen-branded vehicle deliveries fell 1.4% year-on-year in 2025, driven by a continued slowdown in its largest market, China, and the impact of U.S. import tariffs. The automaker shipped 4.52 million units globally, down from 4.59 million in 2024. In North America, sales were reduced by an estimated 3.2% as consumers reacted to an average 25% tariff on imported vehicles, while Chinese deliveries dropped by 8% to roughly 800,000 units after intensified competition from domestic EV manufacturers.

Volkswagen signed a multi-year agreement with Qualcomm Technologies to supply Snapdragon Cockpit Platforms and compute solutions for its next-generation software-defined vehicles (SDVs). The deal enables full Level 4 autonomous driving capabilities, a zonal electrical architecture and advanced AI-driven infotainment systems targeted for rollout by 2027. VW estimates the agreement will reduce in-vehicle software development costs by up to 15% and accelerate time to market for new mobility services across its core European and North American markets.

Industry data show Volkswagen’s group market share in China slipped to 12.3% in 2025, down from 14.1% a year earlier, allowing Geely Auto to move into second place and demote Volkswagen to third. Total Chinese deliveries for the group contracted by 8% to 2.1 million vehicles, reflecting price competition from BYD and aggressive incentives from local brands. VW’s SUV models saw the steepest declines, with Tiguan shipments down 12% as consumer demand shifted toward lower-priced EV crossovers.