First-half China sales fall more than 20% across four brands
The second-quarter results mark an acceleration of a longer trend. For the first half of the year, all four German auto groups reported China sales drops of more than 20% compared with the first half of 2025, the company data show. The persistent decline has squeezed overall profitability and offset gains made in Europe and the Americas.
The latest quarterly drops were some of the steepest seen for German automakers in China, said Lei Xing, an independent auto analyst.
The declines come as leading Chinese brands such as BYD gain ground not only in their home market but also in Europe, intensifying competitive pressure on legacy German manufacturers outside of China as well.
Volkswagen group, the largest of the four, reported that China deliveries fell 36.6% in the quarter to 424,300 vehicles. The slump dragged the company’s global sales down 8.6% even as deliveries rose in Europe and the Americas.
The sustained sales decline in China has already prompted cost-cutting measures from German automakers, as MSI previously reported.