Sales of German carmakers fell sharply again in China during the second quarter of 2026, as a prolonged slowdown in the world’s largest auto market piled further pressure on legacy brands struggling to keep pace with fast-advancing domestic manufacturers.
Volkswagen bore the brunt of the downturn, with second-quarter sales in China dropping 37 per cent, according to Reuters.
The decline came as overall car sales in China fell for a ninth consecutive month in June 2026, underscoring both the depth of the sector’s slump and the difficulty German manufacturers face in matching Chinese rivals on technology.
Company data showed Volkswagen, Mercedes-Benz and BMW all suffered sales drops of at least 30 per cent in China between April and June, with Volkswagen’s year-on-year decline reaching 36.6 per cent.
“The situation remains difficult in China, where we could not escape the overall market decline of around 20 per cent, despite initial positive momentum from our recently launched, locally developed electric vehicles,” said Marco Schubert, a Volkswagen sales executive.
The gloomy figures follow BMW’s decision last month to cut its 2026 outlook, the German group’s third China-related profit warning in under three years.
The company blamed the Middle East conflict for pushing fuel prices higher, which it said had dampened Chinese demand for internal-combustion models, still a significant share of its sales in the country.
