Volkswagen Struggles with EV sales in China; European markets Fare Much Better
The results suggest Volkswagen's core challenge is increasingly regional. Strong demand in Europe is encouraging, but restoring growth will depend largely on how quickly the company can regain momentum in China.
Volkswagen Group's global sales for the first half of 2026 highlight a business being pulled in two different directions. China is currently Volkswagen's biggest challenge, with deliveries falling 25. 9 per cent to 973,000 units as the country's overall automotive market contracted. Although the company has said that its newly developed local electric vehicles are showing positive momentum during the second quarter, they are not enough to offset the broader market decline. In contrast, Europe emerged as the strongest-performing region. Deliveries rose 3. 5 per cent to 2. 04 million vehicles, while the Group's battery electric vehicle (BEV) order bank grew by more than 50 per cent compared to the end of 2025. The recently introduced models like the ID. Polo,Skoda Epiqand the CUPRA Raval have had over 54,000 orders, underlining growing demand for affordable EVs. Globally, however, BEV deliveries slipped 5. 8 per cent to 438,500 units. The decline was largely driven by China and the United States, where EV sales were affected by weaker market conditions, the expiry of government subsidies and higher tariffs. Among the Group's brands,Skodastood out with a 9. 1 per cent increase in overall deliveries, while Volkswagen, Audi and Porsche all reported year-on-year declines. The results suggest Volkswagen's core challenge is increasingly regional. Strong demand in Europe is encouraging, but restoring growth will depend largely on how quickly the company can regain momentum in China.