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By the early 2000s, China accounted for half of VW’s global profits, transforming it into the group’s biggest market. However, as of recent years, VW has grappled with declining sales and a shifting competitive landscape, particularly from Chinese electric vehicle (EV) manufacturers.
The Decline of a Giant
Despite reaching nearly 4 million units sold in 2019, VW's sales in China began to falter, with units dropping to just 2 million across its factories in early 2024. This dramatic decline is compounded by a 50% reduction in earnings since the company's peak in 2015. The Czech brand Škoda, under the VW umbrella, faced a similar fate, with sales plummeting in the face of rapidly growing competition from domestic manufacturers.