Volkswagen quarterly deliveries drop on weak China, low EV demand

(AWP Alliance News) - Volkswagen AG on Monday reported a sharp drop in vehicle deliveries in the third quarter due to softer demand in China.

In the three months to the end of September, the Wolfsburg, Germany-based carmaker delivered 1.9 million vehicles, down 14% from 2.2 million in the same quarter of 2025. Overall, it delivered 6.0 million vehicles in 2026, down 9% from 6.6 million the year before.

"The sharp decline in the overall market in China remains an industry-wide challenge," said Martin Sander, member of the group's extended executive committee for sales. Deliveries to China, its largest market, fell 39% to 405,800 vehicles in the quarter, down from 660,300 a year earlier.

Volkswagen highlighted that electric vehicle sales reached 209,100 in Europe in the quarter, up 20% from 174,800 a year earlier.

"In our home market, we are seeing a significantly accelerated trend towards all-electric vehicles. The main reasons for this are the currently high fuel prices and the wider range of entry-level models," Sander added.

However, overall EV deliveries fell 4.7% in the third quarter compared with a year earlier, weighted down by an 86% decline in the US market and a 30% fall in China.

On Sunday, ahead of the Paris Motor Show, Volkswagen Chief Executive Oliver Blume called for greater cooperation between France and Germany on EVs against Chinese competition, the Financial Times reported.

Blume welcomed the recent discussions between China and the EU, after which Beijing agreed to moderate its hybrid car exports to the EU, but added: "Europe must still ensure a level playing field in its own markets. Those who sell here should compete under comparable conditions and create jobs and value here in Europe too."

The deal discussed between Chinese Commerce Minister Wang Wentao and EU counterpart Maros Sefcovic opens the prospect of cutting China's hybrid-vehicle exports by more than half, based on projections over a four-year period.

Volkswagen shares rose 0.5% to EUR68.80 in Frankfurt on Monday morning.

By Camilla Borri, Alliance News reporter

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