Volkswagen Drops to Third in China Sales As Geely Auto Overtakes

Volkswagen was overtaken by Geely Auto in sales in China last year, dropping to third place after losing its decade-long dominance in the world's largest auto market to BYD in 2024, industry data showed.

Volkswagen's two joint ventures in China with state-owned FAW and SAIC Motor held a combined 10.9 per cent share in terms of retail sales, down from 12.2 per cent in 2024, China Passenger Car Association (CPCA) data showed on Monday.

Geely Auto's share of its home market rose to 11 per cent from 7.7 per cent in 2025, while BYD's share fell to 14.7 per cent from 16.2 per cent.

CPCA secretary-general Cui Dongshu said the JVs represent all sales in China by Volkswagen, which remains the top-selling foreign brand in the country and has accelerated initiatives to catch up with Chinese competitors.

Legacy foreign automakers such as Volkswagen, General Motors and Toyota have ceded share to Chinese rivals due to a slower shift to electric vehicles, which Chinese consumers increasingly favour EVs due to state subsidies.

As well as an expanded partnership with Xpeng to develop electronics architecture for more models in China, Volkswagen plans to develop its first in-house chip for next-generation smart cars in China with Horizon Robotics.

Volkswagen is also looking to export cars developed and made in China to more overseas markets, where automakers including BYD are keen to expand to offset a sluggish home market.

Geely and other Chinese automakers such as Leapmotor gained share last year, mainly in the budget car segment, as BYD found itself in the crosshairs of an industrywide call against intense competition.

The segment with cars priced below 150,000 yuan ($21,512) made up more than 50 per cent of China's new passenger vehicle sales last year.

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