Volkswagen has fallen to third place in China’s automotive rankings, as Geely Auto surged ahead in 2025, ending Volkswagen’s long-standing dominance after BYD claimed the top spot in 2024.
Data from the China Passenger Car Association (CPCA) shows Volkswagen’s two joint ventures with state-owned FAW and SAIC Motor achieved a combined retail market share of 10.9%, down from 12.2% the previous year. Geely Auto climbed to 11%, a sharp rise from 7.7% in 2025, while BYD eased slightly to 14.7% from 16.2%.
According to CPCA secretary-general Cui Dongshu, these joint ventures account for all Volkswagen sales in China. Despite losing ground, Volkswagen remains the leading foreign brand and is accelerating efforts to compete with domestic manufacturers.
International carmakers such as Volkswagen, General Motors and Toyota have been steadily losing share to Chinese rivals, largely due to a slower transition to electric vehicles (EVs). Chinese buyers increasingly favour EVs, supported by generous government incentives.
To regain momentum, Volkswagen is strengthening its partnership with Xpeng to develop advanced electronic architecture for future models. It also plans to design its first in-house chip for next-generation smart vehicles in collaboration with Horizon Robotics.
In addition, Volkswagen is exploring the export of China-developed models to overseas markets—a strategy already pursued by BYD and other Chinese brands seeking growth beyond a cooling domestic market.
Geely and other Chinese automakers, including Leapmotor, gained significant traction last year, particularly in the budget segment. Vehicles priced below R410,000 (US$21,512) represented more than half of China’s new passenger car sales in 2025.
Staff Writer
Reporting from the front lines of the automotive industry, delivering expert analysis and the technical updates that drive the South African motor sector forward.
