Deliveries dropped by 4% to 2.05 million units, the automaker announced on Monday. It cited challenges such as a shrinking Chinese market and tariffs imposed in the US.
The impact was most pronounced in the two largest auto markets worldwide. Shipments in China fell by 15%, while in the US, sales decreased by nearly 20%, with electric-vehicle sales particularly affected in both regions. Some relief came from gains of 4.2% in Western Europe and 7% in South America.
These figures underscore the increasing challenges faced by European automakers in China. Last week, Mercedes-Benz Group AG reported a staggering 27% drop in sales there during the first quarter, representing an even sharper decline than in the prior period.
For Volkswagen, the pressure is particularly intense as domestic firms like BYD Co. and Geely Automobile Holdings Ltd. produce advanced models at competitive prices, threatening VW’s historically strong market position. Skoda is set to exit the Chinese market as consumer preferences shift towards locally manufactured electric vehicles, while Porsche is grappling with decreased demand in the luxury segment.
To enhance its market position and provide products that resonate with local preferences, Volkswagen is collaborating with Chinese manufacturers, including Xpeng Inc. Additionally, its Audi brand has partnered with SAIC Motor Corp. to create electric vehicles specifically designed for the Chinese market.
