Volkswagen H1 2026 Operating Profit Down 11.6%, Global Deliveries Fall 6.3%, China Down 25.9%

Volkswagen Group released its first-half 2026 financial results on July 24, 2026. Revenue for the period was 158.1 billion euros, essentially flat compared with 158.4 billion euros a year earlier. Operating profit came in at 5.931 billion euros, down 11.6% year on year, and the operating margin narrowed to 3.8% from 4.2%. Net profit after tax was 3.1 billion euros, a decline of 30.7%. In the second quarter, revenue reached 82.444 billion euros, up 2%, while operating profit fell 9.5% to 3.47 billion euros.

Global deliveries in the first half stood at 4.1 million vehicles, down 6.3% from the same period last year. Looking at longer-term trends, Volkswagen Group's deliveries declined from 9.24 million in 2023 to 8.98 million in 2025, a drop of 2.8%, while operating profit slumped from 22.6 billion euros to 8.9 billion euros over the same period, a decline of 60%. Chief Executive Officer Oliver Blume said the automotive industry continues to face severe challenges, with geopolitical risks, trade conflicts, rising regulatory requirements and intensifying competition putting pressure on business operations. The group's previously announced plan to cut around 50,000 jobs is still under way, and the exact scale remains to be assessed. Chief Financial Officer Arno Antlitz noted that Chinese competitors are increasing their export activities, adding competitive pressure on the European market, and that Volkswagen's current planned measures are not yet sufficient to address this challenge.

According to data from German automotive data and consulting firm Dataforce, Chinese automakers held a 2.6% share of the European market in 2023. By May 2026, their sales in Europe reached about 138,400 vehicles, lifting their market share to 12.0%, for the first time surpassing the combined 11.3% share of six Japanese automakers in Europe.

By region, Volkswagen Group recorded delivery growth in Europe, North America and South America in the first half of 2026, but deliveries in China fell 25.9% to 971,000 vehicles. FAW-Volkswagen reported cumulative sales of about 558,000 units in the first half, down 25%. Among Japanese brands, Toyota China sold 694,700 vehicles in the first half, a decrease of 17.1%; Nissan China sold 237,000 units, down 15%; and Honda China sold 205,800 units, a sharp decline of 34.7%. Among American brands, SAIC-GM sold 231,200 units in the first half, down 5.7%, while Changan Ford's retail sales in China were 28,800 units, a drop of about 39% from 47,000 units in the same period last year.

Volkswagen Group's management board has submitted key measures to the supervisory board, including gradually streamlining the product lineup to reduce the number of models by up to 50%, and optimizing the configuration mix to cut the number of optional equipment items by up to 75%. The group plans to lower its global annual production capacity from the current approximately 10 million vehicles to about 9 million vehicles. Ralf Brandstätter, chairman and CEO of Volkswagen Group China, said that in the first half of this year, Volkswagen China continued to push its product offensive, strengthen local technology capabilities and improve cost competitiveness, but the market environment in China remains challenging.