Volkswagen China deliveries plunge 38.5% in the third quarter

what happened

Volkswagen delivered 1.89 million vehicles worldwide in the third quarter, down 14.3% from a year earlier, GuruFocus reported. The decline was the company’s steepest quarterly drop in more than four years and the sharpest since the second quarter of 2022. China was the main source of weakness, with deliveries falling 38.5% to 405,800 vehicles.

Martin Sander, a member of Volkswagen Group’s extended executive committee, described the significant contraction in China’s overall market as an industry-wide challenge. Deliveries decreased 5.8% in North America and 2.8% in Western Europe, while Central and Eastern Europe recorded a 1.4% increase.

During the first nine months of 2026, Volkswagen’s worldwide deliveries declined 9% to 6.01 million vehicles. China accounted for much of the decrease, with deliveries there down 30.2% to 1.38 million units. Global battery-electric vehicle deliveries slipped 4.7% to 240,200 in the third quarter; Europe rose 19.6%, while China fell 30.1% to 18,000 vehicles.

why it matters

Volkswagen’s weakness is becoming increasingly concentrated in China, where established foreign automakers face intense competition from domestic EV producers and weaker demand. Investors will be watching China market share, EV deliveries, pricing pressure and whether European demand can offset continued weakness in Asia.

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