Volkswagen, BMW hit by steep China sales drop
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- Volkswagen delivered 4.1 million vehicles in the first half of the year, with its China sales significantly impacted by a deepening market slowdown
- BMW saw deliveries slide in the second quarter as its China sales dropped nearly a third compared to the prior year
- Volkswagen and BMW are both grappling with intensified competition in China from local electric vehicle makers and shifting consumer preferences
- China's auto market is undergoing a structural shift as foreign automakers lose ground to domestic brands in pricing and innovation
Why it matters: Volkswagen and BMW rely heavily on China for profits, so a sustained sales drop risks margin compression and forces faster EV investment. With BMW’s quarterly deliveries down sharply and Volkswagen’s volume hit, both must adapt to a market where legacy advantages no longer guarantee success.
