Volkswagen, Mercedes-Benz, BMW and Porsche all reported quarterly China sales drops of 30% to 41%, highlighting weakening demand and mounting pressure from local brands.
Major German automakers are facing a sharp deterioration in China, with Volkswagen, Mercedes-Benz, BMW and Porsche all reporting April-June sales declines of between 30% and 41% from a year earlier. Each also posted a drop of more than 20% in China for the first half, underscoring how weakening consumer demand, a prolonged property downturn and a fierce domestic price war are pressuring foreign brands in the world’s biggest auto market. Volkswagen said deliveries in China fell 36.6% in the quarter to 424,300 vehicles, contributing to an 8.6% decline in global sales even as Europe and the Americas grew. The downturn is squeezing profits and comes as Chinese brands such as BYD expand overseas, increasing competitive pressure on German manufacturers both at home in China and in export markets including Europe.