Business · Companies · 12 hrs ago
German carmakers lose ground in China as sales slump
Volkswagen, BMW and Mercedes-Benz are losing ground in China, the world’s largest car market.
The three German companies delivered about a third fewer vehicles there in 2025 than in 2019.
Chinese carmakers’ share of their home market rose to 65.3 percent, while German brands have struggled to keep pace with local rivals.
China’s support for electric vehicles and charging networks helped speed the shift away from petrol and diesel cars.
Volkswagen reported a 5.8 billion euro loss for the three months to the end of September, and the German carmakers are cutting jobs.
Volkswagen’s restructuring could remove up to 120,000 jobs by the end of the decade.
The companies are moving more engineering work to China to compete there and bring locally developed technology into cars sold abroad.
German carmakers’ vehicle deliveries in China fell by about a third between 2019 and 2025, as Chinese brands gained market share.
Volkswagen’s difficulties in China contributed to a 5.8 billion euro loss for the three months to the end of September.
Volkswagen, BMW and Mercedes-Benz are cutting jobs, and all three issued profit warnings this year.
The article says German carmakers were slow to respond to Chinese competition and the shift toward electric vehicles.
The companies are moving some engineering work to China to try to remain competitive and use locally developed technologies.
- Who
- Volkswagen, BMW and Mercedes-Benz, the major German carmakers discussed.
- What
- Their sales in China have slumped as Chinese carmakers have gained ground, contributing to losses and job cuts.
- When
- Deliveries fell by about a third between 2019 and 2025; Volkswagen’s reported loss covered the three months to the end of September 2026.
- Where
- China, the world’s largest car market; the job losses are also affecting Germany.
- Why
- Chinese brands and electric vehicles have gained ground, while German carmakers were slow to respond and their expertise in combustion engines became less relevant.
This story does not have two clearly opposing sides.
Carl Benz invented the motor car.
The three major German carmakers’ annual vehicle deliveries in China fell by about a third to 3.87 million.
Chinese carmakers’ share of their domestic market reached 65.3 percent, up from 37.8 percent in 2019.
Volkswagen held the official launch of its end-of-life vehicle dismantling line in Zwickau, eastern Germany.
- German carmakers’ China deliveries
- 3.87 million in 2025, about one-third lower than in 2019
- Chinese carmakers’ domestic-market share
- 65.3 percent in 2025, up from 37.8 percent in 2019
- Volkswagen loss
- 5.8 billion euros for the three months to the end of September
- Potential Volkswagen job cuts
- Up to 120,000 by the end of the decade
- New energy vehicle share
- 67.8 percent of sales in China last month
What people are saying
Nobody was prepared for the swiftness or the violence of the pivot.
The fall for the German automakers has been really abrupt.
It was coming from a place of elitism, a thought of 'Oh, we're better.'
In China people associate brands with specific technologies now. If you think of Volkswagen, you think petrol, not electric.