Volkswagen Faces Challenges Amidst Global Sales Decline
Volkswagen is grappling with significant challenges as it plans a major restructuring that could lead to plant closures and a reduction of up to 100,000 jobs. This move comes in response to a decline in competitiveness, especially in China. Recent figures show a drop in global deliveries, with the company shipping 4.13 million vehicles from January to June 2026, marking a 6% decrease compared to the same period in 2025.
Battery-electric vehicles (BEVs) have not been a saving grace for Volkswagen, experiencing a 5.8% decrease in sales from 465,600 to 438,500 units. The second quarter saw a decline to 238,400 BEVs, a 4.2% reduction year-on-year. However, regional disparities reveal a more nuanced picture.
Volkswagen remains the leader in the BEV market in Europe, with a sales increase to 377,000 units in the first half of the year, an 8.4% rise. Contrastingly, the U.S. and China saw significant declines in BEV sales, dropping by 69% and 48%, respectively. The company slightly recovered these losses in Q2, with decreases reduced to 49% and 36% in the U.S. and China, respectively. Volkswagen attributes these declines to “the phasing out of government incentive programmes” in the U.S. and new tariffs.
| Customer Deliveries by Market | Apr. – Jun. 2026 | Apr. – Jun. 2025 | Delta (%) | Jan. – Jun. 2026 | Jan. – Jun. 2025 | Delta (%) |
| Europe | 200,700 | 189,800 | +5.7 | 377,000 | 347,900 | +8.4 |
| USA | 5,800 | 11,400 | -49.0 | 9,800 | 31,300 | -68.8 |
| China | 21,500 | 33,400 | -35.6 | 30,900 | 59,400 | -47.9 |
| Rest of the World | 10,400 | 14,200 | -26.4 | 20,700 | 27,000 | -23.2 |
| World | 238,400 | 248,800 | -4.2 | 438,500 | 465,600 | -5.8 |
On a brighter note, plug-in hybrids (PHEVs) and range-extender vehicles (EREVs) experienced a 27% increase in sales, totaling 246,000 units in the first half of the year. BEVs accounted for 10.6% of Volkswagen’s total deliveries, while EREVs reached noteworthy figures with the ID. ERA 9X04 in China nearing over 10,000 deliveries.
The overall delivery of 4.13 million vehicles also highlights a mixed performance in different regions. Volkswagen managed to counteract some of its losses in China with gains in South America (+8% year-on-year), Western Europe (+3%), and Central and Eastern Europe (+7%). However, North America showed a 3% decline, emphasizing that combustion engine vehicles are currently performing better than electric models in the U.S.
Volkswagen’s best-selling BEV models include:
- Škoda Elroq – 59,900 units
- Volkswagen ID.4/ID.5 – 53,700
- Škoda Enyaq (incl. Coupé) – 48,300
- Volkswagen ID.3 – 44,400
- Audi Q4 e-tron (SUV/Sportback) – 33,800
- Audi Q6 e-tron (SUV/Sportback) – 31,900
- Volkswagen ID.7 (incl. Tourer) – 29,500
- Volkswagen ID. Buzz (incl. Cargo) – 27,200
- Cupra Born – 20,800
- Audi A6 e-tron (Avant/Sportback) – 18,400
Škoda is emerging as a significant BEV volume driver, with a 48% increase year-on-year, narrowing the gap with Volkswagen Passenger Cars. Meanwhile, Porsche and Volkswagen Passenger Cars saw declines of 31% and 28%, respectively. The order backlog for BEVs in Europe increased by over 50%, suggesting a potential recovery in demand.
Marco Schubert, Member of the Extended Group Board of Management for Sales at Volkswagen, stated: “The Volkswagen Group grew by around two per cent overall in the first half of the year outside of China. We continued to gain ground, particularly in South America and Europe. It is especially pleasing to note that in our home region, the Electric Urban Car Family – launched just a few weeks ago – is being very well received by our customers. […] The situation in China remains challenging, where we were unable to escape a significant total market decline of around 20 per cent – despite initial positive momentum from our newly introduced, locally developed electric vehicles.”
For more detailed insights, visit volkswagen-group.com.
Original Story at www.electrive.com