Volkswagen China chief expects China's passenger car market to decline by 20pc in 2026

44 mins ago

Cars are parked in front of the Zwickau Volkswagen Plant on July 9, 2026 at the Zwickau, eastern Germany. Volkswagen workers staged protests nationwide on July 9 as unions warned of "major conflict" if the struggling German car giant pushes ahead with what could be the global auto industry's biggest restructuring. (Photo by Jens SCHLER / AFP)

China's passenger car market is expected to decline by about 20 percent in 2026, Volkswagen's top executive in China Ralf Brandstaetter said on Tuesday.

His comments come as the German auto giant battles a deepening crisis in its largest market weighed down by falling deliveries and slimmer profit margins.

The current contraction in the market in China was equivalent to the impact of the COVID-19 pandemic, Brandstaetter told an industry summit.

Sales of China's domestic car market fell for the eleventh month in a row in August, though the country's car exports stayed robust the same month.

Reuters

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