Volkswagen announced the sharpest decline in car shipments in four years

Volkswagen Group reduced global car shipments in the third quarter of 2026 by 14.3%, to 1.89 million vehicles. The drop was the most severe in more than four years and was primarily due to a deterioration in sales in China— the largest market for the German automaker. This was reported by Reuters with reference to the company's statement on October 12.

In China, Volkswagen's shipments decreased by 38.5% in the quarter. In January-September, the drop was 30.2%. In North America, the indicator decreased by 5.8%, in Western Europe — by 2.8%. Growth was recorded only in Central and Eastern Europe (+1.4%).

The last time Volkswagen saw a sharper quarterly decline was in the second quarter of 2022, when shipments decreased by 22.4%. Earlier, Porsche and Mercedes-Benz announced a decrease in supplies in China.

"The sharp decline in the Chinese market as a whole remains a challenge for the entire industry," said Martin Sander, a member of the Volkswagen Group's extended executive committee.

Volkswagen is preparing a large-scale production reduction. What does this mean?

As reported on October 7, Porsche intends to cut 40% of senior positions in the medium term as part of a large-scale cost reduction and business restructuring program. At the same time, the company plans to reduce personnel costs in production by up to 30%, and the cost of developing new models by up to 20%.