German carmakers, including Volkswagen, Mercedes-Benz, and BMW, saw a significant drop in sales in China during the second quarter. According to company sales data, Volkswagen reported the steepest year-on-year decline at 36.6%.
Challenges in the Chinese Market
The situation remains challenging in China, where German carmakers were unable to escape the overall market decline of around 20%, despite initial positive momentum from newly launched, locally developed electric vehicles. German brands built their success in China on combustion engine heritage, which analysts and industry observers say no longer resonates with young, tech-savvy Chinese consumers.
Last month, BMW slashed its 2026 guidance in its third China-related profit warning in less than three years. It also said the Middle East war was driving up fuel prices and impacting Chinese consumer demand for the combustion engine models on which it still heavily relies in that market.
Car sales in China fell for a ninth consecutive month in June, prompting automakers to increasingly turn to export markets, including Europe. Volkswagen, Mercedes, and BMW were unable to offset their losses in China in other regions during the second quarter, recording global sales declines of 8.6%, 8%, and 4.9%, respectively.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
