For a long time, it looked like Volkswagen had permanently lost its footing in its most important market. But the first months of 2026 bring the turnaround: Volkswagen is back at the top of China's car market.
Details
In January and February, VW's joint ventures reached 13.9% market share – just ahead of Geely (13.8%) and well ahead of BYD, which crashed to 7.1%. 4th place instead of 1st.
The reason: Beijing ended purchase tax exemptions for e-cars and cut subsidies for trade-ins.
Rank | Manufacturer / JVs | Market share (Jan-Feb) | Status |
|---|---|---|---|
1. | Volkswagen (FAW/SAIC) | 13.9% | Back at the top; focus on localization. |
2. | Geely | 13.8% | Close behind; strong performance from Volvo/Polestar. |
3. | Toyota (GAC/FAW) | 7.8% | Comeback through strong hybrid demand. |
4. | BYD | 7.1% | Biggest sales slump since the pandemic. |
VW's counterpunch
The German group is betting on radical localization: First co-development with Xpeng rolling off the production line, 20+ new EV models coming in 2026 for China alone.
BYD counters with first major battery upgrade in six years – but the numbers show: Without state help, it's tight.
Despite reclaiming the top spot, the situation remains tense for Volkswagen. After-tax group profit collapsed by 44% to €6.9 billion last year – the weakest result since Dieselgate.
VW plans to cut around 50,000 jobs nationwide by 2030 to reduce transformation costs.
Sources: Reuters, Volkswagen press release
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