- VW’s China boss admits young buyers now see it as a brand for parents.
- German market share in China fell from 26 percent to 16 percent since 2019.
- BYD overtook VW in 2024, and Geely pushed it to third the year after.
For more than two decades, a German badge in China was shorthand for arrival. That equation no longer holds. China remains one of the most important markets for German automakers. The trouble is they are now struggling to compete with local rivals who have captured the hearts and minds of young buyers.
The boss of VW in China, Robert Cisek, admitted that the rapid change in China’s car market has been “beyond imagination,” and means that now, “some younger customers perceive us as the brand for the parents.” For more than 25 years, VW was the best-selling carmaker in China, but was overtaken by BYD in 2024, and dropped to third in 2025 behind Geely.
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Automotive consultant Felipe Munoz says German brands “didn’t see this big change coming, and they didn’t see the speed at which it came.” While overall new car sales in China continue to climb, the market share of German brands slipped from 26 percent in 2019 to 16 percent in 2025, when they sold 3.9 million vehicles.
Germans Race To Compete
In times gone by, companies like VW could sell their vehicles in China thanks to their build quality, high-end materials, and strong reputations. However, this is no longer enough, Reuters reports.
To try and claw back some ground, the Volkswagen Group will launch 20 new-energy vehicles in China this year, including several battery-electric models, plug-in hybrids, and EVs. Many of these new models were recently unveiled at the Beijing Auto Show, including the ID. Aura T6, which was built in partnership with FAW, the ID. Unyx 09, created alongside Xpeng, and the all-electric AUDI E7X from the firm’s SAIC joint venture.
It remains to be seen if vehicles like these will be enough. According to a recent survey from AlixPartners, young buyers in China are more likely to avoid German cars, despite the ‘Made in Germany’ tagline holding strong appeal in many other countries.
