Volkswagen Group’s sales declined by 8% Y-o-Y in China as the top-selling foreign auto brand in 2025
In the Chinese market, the Volkswagen Group delivered over 2.6938 million vehicles in 2025, down 8% year-on-year, partially contributed by the increasing new energy vehicle (NEV) penetration rate in China.
In 2025, NEV retail sales share reached 53.28%, according to China Passenger Car Association. For comparison, the NEV retail sales share was 47.16% in 2024 and 35.29% in 2023.
At the same time, despite declining sales, it remains the top-selling foreign automotive brand, with over 22% market share in the gasoline-powered vehicle segment, delivering 2.57 million units in China.
In terms of vehicle sales, the Volkswagen Passat specifically leads the B-segment gasoline-powered vehicle market. The Audi brand has also returned to the top of the luxury gasoline-powered vehicle sales charts after six years, with the Audi A6L being the best-selling C-segment luxury gasoline-powered sedan.
For reference, the Volkswagen Group delivered over 8.9839 million vehicles globally in 2025, down 0.5% year-on-year. Of those, 983,100 units were all-electric vehicles, up 32% year-on-year, accounting for 10.9% of the Group’s global sales.
Moreover, the Volkswagen Group’s vehicle deliveries in the fourth quarter of 2025 decreased by 4.9% year-on-year, totaled 2.3798 million vehicles, compared to 2.5023 million vehicles in the same period last year. Of these, 719,800 vehicles were delivered in the Chinese market, a decrease of 17.4% year-on-year.
It is also worth pointing out that the Volkswagen Group established its first complete R&D and testing center outside of its headquarters in Germany in China in November 2025.
Looking ahead to 2026, the Volkswagen Group plans to launch more than 20 all-electric, plug-in hybrid, and range-extender vehicles in China, equipped with intelligent connectivity technologies and advanced driver assistance systems. This includes new models based on the CMP (Compact Main Platform, previously named China Main Platform) developed in China and CEA (China Electronic Architecture).
Then by 2027, the Volkswagen Group plan to launch more than 30 electrified models in China; by 2030, this number is planned to approximately 50 new energy vehicles, of which about 30 will be all-electric vehicles.
Source: Volkswagen Group, CPCA
Edit 2026/01/14 12:23 – Added details on impact of new energy vehicle penetration in China on Volkswagen’s declining sales.
