China’s passenger car market could shrink by about 20% in 2026, Volkswagen’s China chief Ralf Brandstaetter said on Tuesday, as the German automaker faces worsening pressure in its biggest market.
Brandstaetter said the current downturn was comparable to the impact of the COVID 19 pandemic, citing falling vehicle deliveries and weaker profit margins.
China’s domestic car sales have declined for 11 consecutive months, including in August, although exports remained strong during the month.
The market downturn adds to Volkswagen’s challenges as it competes in an increasingly difficult Chinese auto sector.
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