Archive · 22 Jul 2026
German Auto Exports to China Fall 25%
German car companies like Volkswagen and BMW are selling fewer cars in China.
This is because Chinese car companies are making good, affordable cars that people in China prefer.
Because of this, German car exports to China have dropped a lot.
Volkswagen is thinking about cutting many jobs and closing some factories.
Meanwhile, Chinese car brands like BYD are starting to sell more cars in Europe.
This is a big change because China used to be a very important market for German car companies.
German vehicle and parts exports to China fell by 25% to €4.7 billion in the first five months of 2026.
Volkswagen reported a 37% drop in China sales in the second quarter, considering significant job cuts and plant closures.
Mercedes-Benz and BMW saw a 30% decline in China sales in the second quarter.
Porsche reported a 32% drop in deliveries to China in the first half of 2026.
Chinese brands like BYD and Chery are expanding in Europe with budget-friendly electric models.
- Who
- German automakers like Volkswagen AG and BMW AG, Chinese automakers like BYD Co. and Chery Automobile Co.
- What
- Decline in German vehicle and parts exports to China, rise of Chinese automakers in global markets.
- When
- First five months of 2026, with significant declines reported in the second quarter.
- Where
- China, Europe.
- Why
- Growing competition from domestic Chinese brands, economic factors like property downturn.
German Automakers
Chinese Automakers
Market Share
German Automakers
German automakers are losing market share in China due to competition from domestic brands.
Chinese Automakers
Chinese automakers are gaining market share with competitive pricing and design.
Export Performance
German Automakers
German vehicle and parts exports to China fell by 25% to €4.7 billion.
Chinese Automakers
Chinese brands are expanding globally, including in Europe, with budget-friendly electric models.
- Export Decline
- 25% decrease in German vehicle and parts exports to China.
- Export Value
- €4.7 billion ($5.4 billion) in the first five months of 2026.
- Peak Export Year
- 2022 with €13.6 billion in exports.
- VW Sales Decline
- 37% drop in China sales in the second quarter of 2026.
- Job Cuts at VW
- Up to 50,000 additional job cuts considered, totaling 100,000.
- Mercedes and BMW Sales Decline
- 30% drop in China sales in the second quarter of 2026.
- Porsche Sales Decline
- 32% drop in deliveries to China in the first half of 2026.
- Chinese Brands Expansion
- BYD Co. and Chery Automobile Co. expanding in Europe with budget-friendly electric models.