By Dominic Chopping

Volkswagen delivered slightly fewer cars last year as the automaker was hit by trade disruption from U.S. tariffs and intense competition in China.

Volkswagen, which houses a stable of brands that includes VW, Audi and Porsche, among others, said its group car deliveries fell 0.5% on year to 8.98 million in 2025, with deliveries in China down 8% to 2.69 million cars.

German peers BMW and Mercedes-Benz have also in recent days reported sales figures that highlighted the challenging Chinese market.

Meanwhile, Volkswagen group deliveries fell 4.9% on year in the fourth quarter, again as sharp drops in China and North America offset gains in all other regions.

"The intense competitive situation in China, as well as tariffs and the discontinuation of electric vehicle subsidies in the U.S. have impacted our business," said Marco Schubert, member of the Volkswagen Group's extended executive committee for sales.

"On the other hand, we have further expanded our strong position in Europe despite new competitors."

The situation in China has sparked a prolonged price war among more than 100 auto brands, but the German carmaker has made clear it would not engage, instead sticking to its pricing model and prioritizing profitability over higher volumes.

The company said Monday it accelerated the launches of new locally developed electrified vehicles in the country in 2025 and prioritized the delivery of higher-margin internal combustion engine vehicles.

At the same time, it has launched an export strategy that sees vehicles produced in China and exported to the Middle East, with plans to expand this export business with local partners to focus on high-potential markets across Southeast Asia, the Middle East, Central Asia, Latin America, and Africa.

Volkswagen plans to launch more than 20 fully-electric, plug-in hybrid and range-extended models in the Chinese market in 2026 to engage more proactively in competition in China.

Global deliveries of the group's battery-electric cars rose 2.7% in 2025 on year, with growth in all regions except China.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

January 12, 2026 08:43 ET (13:43 GMT)

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