Home Auto News German vehicle exports to China fall 25% as local brands push Volkswagen, BMW back
German vehicle and auto parts exports to China fell more than 25% in the first five months of 2026, as Volkswagen, BMW and Mercedes lost ground to Chinese automakers in the world’s largest car market. By Bloomberg July 22, 2026, 7:53:01 AM IST (Published)
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German exports of vehicles and auto parts to China continued a multi-year slump in the first five months of 2026, as manufacturers struggle with growing competition from domestic Chinese brands. Vehicle and parts exports fell by more than a quarter to €4.7 billion ($5.4 billion) compared with a year earlier, according to official data.
Exports for the January through May period have been declining since a peak of €13.6 billion in 2022. The world’s biggest car market has long been a key source of revenue for German carmakers. Until 2024, vehicles and auto parts accounted for the biggest share of exports to China from Europe’s largest economy but have been overtaken by machinery and electrical equipment. German automakers like Volkswagen AG and BMW AG are rapidly losing Chinese market share, falling behind domestic manufacturers increasingly offering models that can compete on price and design. VW reported a 37% drop in China sales in the second quarter, deepening a crisis at Europe’s biggest auto manufacturer and prompting management to consider sweeping cost-cutting measures. VW Chief Executive Officer Oliver Blume has floated plans to cut as many as 50,000 additional jobs, which would double the number of reductions to 100,000, and shutter as many as four German plants. The company is also planning to halve its 150-model lineup across brands including Porsche, Audi and Skoda.
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German luxury carmakers like Mercedes-Benz Group AG and BMW have also reported declining demand in China as fierce local competition, in combination with a property downturn, have reduced demand for pricier, high-end models. China sales at Mercedes and BMW’s namesake and Mini brands slumped 30% in the second quarter, while Porsche AG reported a 32% drop in deliveries to the Asian nation in the first half. Chinese brands aren’t staying in China. Manufacturers like BYD Co. and Chery Automobile Co. are bolstering their presence in Europe, with budget-friendly electric models, in particular, helping drive their expansion on the continent. (Edited by : Vivek Dubey)
