Volkswagen posted an 8.6% decline in global vehicle deliveries during the second quarter, with the downturn largely driven by a sharp slowdown in China, the company announced on Friday.
The German automaker said deliveries in China plunged 36.6% compared with the same period last year, highlighting the continued pressure facing foreign carmakers in the world’s largest automotive market.
Despite the weakness in China, Volkswagen recorded growth in other major regions. Deliveries increased 7.7% in North America and 1.8% in Western Europe, helping to partially offset losses in Asia.
Marco Schubert, a member of Volkswagen’s extended executive committee responsible for sales, acknowledged the difficult market conditions in China, noting that the company was unable to avoid the country’s broader automotive market decline, which he said was around 20% during the quarter.
China has become an increasingly challenging market for global automakers as domestic manufacturers continue to gain market share through aggressive pricing, rapid innovation, and strong demand for locally produced electric vehicles.
Volkswagen joins several other German luxury carmakers reporting weaker second-quarter sales in China. Rivals including Mercedes-Benz, BMW, and Porsche have also cited intense local competition and softer consumer demand as major factors behind their declining deliveries.
The latest sales figures come as Volkswagen explores a major restructuring plan aimed at improving profitability. The proposed overhaul could reportedly result in the elimination of up to 100,000 jobs, alongside reductions in vehicle models and further cuts to production capacity.
The company is betting that these measures will help streamline operations and strengthen its competitiveness amid slowing global demand and mounting pressure in key international markets.
