VW is growing worldwide: electric cars are booming, China is in decline!

VW is growing worldwide: electric cars are booming, China is in decline!

In the second quarter of 2023, the Volkswagen Group took a small step in growth and sold 2.27 million vehicles worldwide. This corresponds to an increase of 1.2 percent compared to the previous year. This positive development is also reflected in the figures for the first six months, which are also positive, according to News38.de.

In China, where VW is traditionally strong, the group increased sales by 2.8 percent in the second quarter, despite the electric car market having fallen by almost a third, thanks to its focus on combustion engine technology. In the European market, however, sales of battery electric vehicles (BEVs) have skyrocketed and increased by almost 75 percent. This is also due to the fact that orders for electric cars in Western Europe are increasing significantly and the core brand VW Passenger Cars recorded an increase of 4 percent in the second quarter.

The electric car market is booming in Europe

In the first half of 2025, Volkswagen added an impressive total of 4.4 million cars to its global sales figures, up 1.3 percent year-on-year. The main driver of this increase is the sales of electric vehicles, which rose by a whopping 47 percent to 465,500 units, as Tagesschau.de reports. Interestingly, VW's market share of electric cars in Europe has increased to 28 percent, with one in five vehicles delivered in Western Europe now being electric.

But the simultaneous development also presents challenges. In the USA, there have been car import duties of 27.5 percent since April 2025, which are putting a heavy burden on Audi and Porsche and causing sales there to fall by 8.5 percent. Volkswagen boss Oliver Blume is therefore committed to lower tariffs and investments in the USA. Audi is also considering possibly establishing its own factory in the country.

Volkswagen under pressure in China

By the way, what is it like in China? Here, VW suffered a 2.3 percent decline in sales in the first half of the year, which amounts to over 1.3 million cars. Although a slight increase of 2.8 percent was recorded in the second quarter, the main focus remains on the profitable business with combustion vehicles, which was recently also a strategic decision. However, premium brands such as Audi are suffering from a decline of 5.9 percent to 783,531 cars, although electric cars here increased by 32 percent to 101,381 units.

In the highly competitive market, the Chinese manufacturer BYD has now overtaken Volkswagen in car sales in China. The manufacturer is facing challenges including weaker sales and declining market share in China, according to recent data, highlighting the need for an austerity program to secure investments in e-mobility and autonomous driving.

The look into the future

The current business figures are a mixture of light and shadow. Although Volkswagen is doing well compared to other manufacturers, falling sales figures, especially at Audi and Porsche, show that innovation and adaptability are crucial. The group plans to cut over 35,000 jobs in Germany in a socially responsible manner by 2030 in order to achieve its corporate goals. Ultimately, it remains to be seen whether future strategic decisions and investments can improve the current balance sheet while Volkswagen continues to operate in a rapidly changing market where the competition does not sleep either.

Overall, Volkswagen remains a heavyweight in the automotive industry, but the challenges should not be underestimated. The next steps must be carefully considered so that the company does not fall behind.