VW’s China Collapse Is Bad, But Its American Problem Might Be Harder To Fix

Global car demand has proven uneven this year, with regional pressures shaping very different outcomes for major automakers. Like many other car manufacturers, the Volkswagen Group has had a difficult start to 2026. Company sales slipped 4 percent in the first quarter, and EVs fell even further, despite a generally positive outlook across Europe.

The world’s second-largest automaker ended the quarter having sold 2,048,900 vehicles, down 4 percent from the 2,133,600 it sold in Q1 2025. This drop was largely due to a 14.8 percent collapse in China, from 644,100 units to 548,700.

Read: A 96% Sales Collapse Is Why VW Just Killed US ID.4 Production

Similarly, sales were down 13.3 percent in North America from 237,200 units to 205,500. The drop was led by the United States, where sales fell 20.5 percent, blamed on the current tariff situation, “as well as changes in regulations.” Sales were also down 8 percent in Asia-Pacific to 70,200 and declined 5.3 percent in the Middle East and Africa to 92,800.

VW Q1 2026 Sales

Bucking the trend was a 4.2 percent increase in sales in Western Europe, rising from 814,000 to 848,500. Sales in Central and Eastern Europe also climbed 7.6 percent to 135,300, while sales in South America increased 7 percent to 147,900.

“The first quarter of 2026 was once again characterized by very challenging economic and geopolitical conditions. The worldwide automotive market declined overall through the end of March,” VW’s Marco Schubert said of the results.

Just three brands from the VW Group reported sales rises in the first quarter. The first was Skoda, whose sales rose 14 percent to 271,900, up from 238,600 in the first quarter of 2025. Additionally, Volkswagen Commercial Vehicles sales rose 10.1 percent to 88,900, while MAN truck sales climbed 14.5 percent to 23,600.

VW Brand Sales