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German Car Sales Plunge 30-40% in China, VW Cuts Models

7/12/2026

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Summary

Story summary

German carmakers' sales in China fell 30%-41% in the April-June quarter, the steepest declines this year.
Volkswagen deliveries fell 36.6% to 424,300 vehicles, prompting the company to cut its China model lineup by up to half.
Analysts say fierce price wars and faster Chinese EV updates are eroding foreign market share as German brands posted over 20% year-on-year sales drops in China for the first half of 2026.

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Story summary

German carmakers' sales in China fell 30%-41% in the April-June quarter, the steepest declines this year.
Volkswagen deliveries fell 36.6% to 424,300 vehicles, prompting the company to cut its China model lineup by up to half.
Analysts say fierce price wars and faster Chinese EV updates are eroding foreign market share as German brands posted over 20% year-on-year sales drops in China for the first half of 2026.