The VW ID. Era 9X is not selling well in China. The entire Volkswagen Group saw a 31.6 percent decline there.
Volkswagen Group announced it is “on track” regarding results for the first half of 2026, but reality is far more brutal. Worldwide sales declined by 8.4 percent year on year, with a drop of -31.6 percent in China alone. The group is thus following the path taken by most other traditional Western manufacturers: it is losing market share rapidly, and new models “funded largely by customers in Europe” are not helping it reverse the downward trend.
Volkswagen Group. Wealth thanks to China, poverty because of China?
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Volkswagen Group. Wealth thanks to China, poverty because of China?
VW ID. Era 9X: a “success” in Europe that went unnoticed in China
The Volkswagen Group sold “only” 4 million cars worldwide in the first half of 2026. If this downward trend continues, it won’t even reach 8 million cars for the entire year. The worst performance in this decade was the post-COVID, war-torn year of 2022, when the accumulation of all setbacks reduced sales to 8.26 million units. The last time Volkswagen Group delivered fewer than 8 million cars was in 2010, during the period after the U.S. housing bubble and the eurozone crisis, when market activity needed to be supported through “subsidies for eco-friendly diesel engines.”
But while in 2010 it was still possible to pretend that diesel engines were the most modern and environmentally friendly propulsion systems in the world, this is no longer acceptable by 2026. Even Germany seems to realize that its domestic manufacturer is falling behind the global leaders when it comes to new technologies. The Volkswagen Group has to resort to price cuts that delight buyers but affect the company’s financial results. As a result, the overall margin was only 3.8 percent, and operating profit dropped by 11.6 percent (source). European customers buy cars cheaply and enjoy the price reductions, yet they still seem to fund Volkswagen’s experiments in China.
VW ID. Era 9X, a “success” in Europe that went unnoticed in China
The Volkswagen ID. Era 9X, the largest SUV in Volkswagen’s Chinese lineup (5.21 meters long, 3.07 meters wheelbase, 51 or 65 kWh battery, PHEV/EREV), which was intended to attract new customers to dealerships through cooperation with SAIC, is selling poorly. It’s not a disaster on the scale of the Mercedes CLA, but 3,000 units delivered in June 2026 is roughly an order of magnitude lower than expected. The manufacturer has already started lowering prices, and there are rumors about bringing the model to Europe since the European Union has not yet imposed tariffs on plug-in hybrids.
The failure of Volkswagen Group can hardly be described as anything other than “spectacular,” given that in the same segment, Xpeng is suddenly standing out with its Xpeng GX model (BEV or EREV, 5.27 meters long), while Nio’s best-selling car turns out to be the Nio ES8 (BEV, 5.02 meters long). Even Xiaomi suddenly wants to have two large SUVs (Xiaomi Skynomad N90, Xiaomi Skynomad N70).
The Nio ES8 being handed over to new buyers. Second from the left: William Li, president of Nio (c) Nio
Editor’s note from Elektrowozu: It seems the Chinese are currently fascinated by tank cars, as the largest models are boosting sales for brands. It’s hard not to think this is influenced by Hollywood. And that these models will experience a catastrophic drop in sales in the coming years.
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