German automakers Volkswagen and BMW posted bruising second-quarter sales declines in China as the market continued to worsen, offsetting some performance gains elsewhere.
Both registered hefty declines in vehicle deliveries in China during the quarter as the market there slumped.
In a quarterly sales update, Volkswagen said the Chinese auto market saw a total market decline of around 20% in the first six months of the year.
Car manufacturers have faced intense competition in China as tech-heavy domestic brands have offered deep discounts to win customers, while economic-growth concerns in the country and a lengthy property market slump have also forced a downturn in consumer spending.
Volkswagen Group, which houses a stable of brands that includes VW, Audi and Porsche among others, said Friday that its group vehicle deliveries fell 8.6% on year to 2.08 million in the quarter, weighed by a 37% drop in China.
"The situation in China remains challenging, where we were unable to escape a significant total market decline," said Marco Schubert, member of the Volkswagen Group's extended executive committee for sales.
The weak performance came despite a 7.7% jump in North America deliveries and a 1.8% increase in Western Europe.
Meanwhile, BMW said group sales fell 4.9% in the quarter to 590,962 vehicles as its overall performance was weighed by a 30% decline in sales of its BMW and Mini branded cars in China.
"The market in China and the countries of the Asia-Pacific region saw a significant decline," BMW said in a statement Friday.
Echoing comments from Volkswagen, BMW recorded a 7.6% sales increase in Europe, excluding its home market of Germany, and a 12% jump in the U.S.
Mercedes-Benz and Porsche have both also recently reported falling deliveries in China.
The latest figures follow Volkswagen on Thursday presenting a plan to cut its model lineup by as much as half while continuing to reduce manufacturing capacity as it seeks deep cost cuts. BMW also said it would accelerate cost-saving plans last month as it slashed earnings guidance due to the declining Chinese market.
Write to Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
July 10, 2026 08:44 ET (12:44 GMT)
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