Volkswagen’s China Sales Slump Amid Fierce EV Price War

Volkswagen reported a steep decline in Chinese sales during 2024, as domestic EV manufacturers, led by BYD, intensified an aggressive price war that squeezed profit margins across the industry.

The company’s sales in China, long its largest market, fell by roughly 10% compared to the previous year. In response, Volkswagen took a stake in Chinese EV maker Xpeng to accelerate the development of more competitive electric models, while also launching cost-cutting measures at home in Germany.

AUSMAH follows the shifting balance of power in the global EV market closely, as pricing pressure from Chinese manufacturers continues to reshape strategy across the entire automotive sector.