- Volkswagen Group sales fell 8.6 percent overall in the second quarter of the year and are down 6.3 percent for the year.
- Sales declined in China, which offset positive results in North America and Europe.
- Volkswagen Group plans to halve its portfolio to remain competitive.
The situation once again looks serious for Volkswagen Group. The German automotive group’s sales overall fell 8.6 percent in the second quarter of the year, weighed down by the company’s poor performance in China.
VW Group sales in Asian countries fell by a massive 36.6 percent from April to June, and are down 25.9 percent for the year. The automaker also struggled in the Middle East, Africa and the rest of Asia-Pacific markets. Marcos Schubert, member of the VW Group’s extended executive committee for sales, said:
‘The situation remains challenging in China, where we were unable to avoid an overall market decline of approximately 20 per cent – despite initial positive momentum from our newly introduced, locally developed electric vehicles. Globally, we are seeing a decline of about six percent in deliveries.
The sharp decline in sales in these areas did not offset the positives elsewhere. VW Group sales in Latin America have risen 9.4 percent in the past three months – and are up 8.3 percent for the year.
Sales are also rising across Europe, with the automaker seeing significant gains in Central and Eastern Europe. They are up 6.7 percent for the second quarter and 7.2 percent for the year. Western Europe was more sluggish, growing 1.8 percent in the quarter. They are up 2.9 percent in the first half.
How is VW Group performing in North America?
After a slow start to the year, Volkswagen Group sales in North America are on the rise, rising 7.7 percent last quarter. Despite this, sales in the region are still down 3.1 percent for the year. The automaker attributed this to the “challenging environment” arising from the “tariff situation” and regulatory changes.
The mainstream Volkswagen brand had a strong quarter in the United States, with sales rising a surprise 24.9 percent. Led by the Tiguan, the German brand sold nearly 90,000 cars in just three months, up 152.5 percent.
Sales of the Jetta, Golf GTI and Golf R increased by 9.7 percent, 17.2 percent and 12.5 percent, respectively. Volkswagen sold 162,961 cars in the first six months of 2026, nearly 3,000 more than during the same period in 2025. Also on sale for ID. Buzz increased 121.5 percent – from 564 to 1,249.
The surprising thing is that Porsche sales continue to decline. The automaker sold nearly 3,000 fewer cars in the second quarter. Almost every model was down except the 911, which is up 39.4 percent and 56.3 percent in the second quarter.
Audi of America also struggled. Sales declined 3.0 percent from April to June. The A3, A5, A6, Q5 and Q8 saw sales growth. For the year, Audi sales were down 17.0 percent.
What’s next for Volkswagen Group?
Yesterday, the automaker announced that it would begin downsizing its portfolio immediately. The automaker plans to reduce its lineup by up to 50 percent. The models that remain will have up to 75 percent fewer options available.
The company plans to “focus on products and technologies that provide the greatest added value for customers and the highest value contribution to the group.” It will also reduce its annual production capacity to 9.0 million units. The group invested in early 2020 to expand this to 12.0 million vehicles.
Drastic changes may not be enough to right the ship. There are rumors that Volkswagen may close four plants, laying off 100,000 workers.
Motor1’s Opinion: Volkswagen Group’s struggling performance represents the overall challenges facing the industry. New tariffs, changing regulations and competition are causing VW Group and other automakers to refocus their resources on the brands and models they sell.
