VW Group (1) Proceeding with Business Restructuring in China and Germany
GlobalData Production Forecast: Fall below 7.5 million units; Rush to launch xEVs
Summary
The VW Group (Volkswagen AG) continues to see declines in sales and production actuals amid weakening competitiveness in the Chinese market. In the period from January to August 2026, VW sales in China fell 33.8% year-over-year (y/y), while production in China dropped 35.4%, with sluggish sales of core ICE (internal combustion engine) models weighing on overall performance. Conversely, although sales of electrified vehicles are increasing, they have not been enough to offset the decline in ICE vehicle sales. In light of these circumstances, the VW Group announced its “Future Plan.” Under this plan, the company has set out measures such as optimizing production capacity, reducing fixed costs, consolidating its product lineup, and restructuring its China business, and is aiming to restore profitability and competitiveness with a target operating margin of 9% by 2030.
According to GlobalData's forecast, the VW Group's light vehicle production is expected to decline from 7.9 million units in 2026 to around 7.4 million units starting in 2027. Progress in structural reforms and the reorganization of regional manufacturing organizations will determine the mid- to long-term recovery in production and improvement in profitability.
![]() |
| VW Group annual production trends by country (Top 10) (Source: MarkLines VW Group vehicle production volume dashboard) |
If you register as a free member, you can read the rest of this article for a limited time.
In addition, you can also enjoy the following content for free:



Japan
USA
Mexico
Germany
China (Shanghai)
Thailand
India