German Automakers See Steep Sales Drops in China Amid 2026 Market Shift

BMW reported that its global sales reached just over one million units in the first half of 2026, outpacing Mercedes and Audi despite all three posting double‑digit declines. In China, BMW’s deliveries fell 20.4% to 261,773 vehicles, while Mercedes‑Benz saw a 28% drop, reflecting a broader collapse of German luxury sales in the Chinese market, which contracted 24% overall.

Volkswagen’s half‑year figures echoed the trend, with global sales down 6.3% and Chinese volumes falling 25.9% year‑on‑year. Although Volkswagen retained a 13.9% share of the Chinese passenger‑car market early in the year, its joint‑venture sales slipped faster than the market, signalling the end of a long‑standing business model reliant on Chinese subsidies.

A separate report on Germany’s domestic used‑car market showed a 2.4% decline in second‑hand vehicle transactions for the first half of 2026, with major brands such as Volkswagen, Mercedes, BMW and Renault all registering lower volumes. The shift highlights the broader challenges facing German automotive manufacturers both abroad and at home.