ChinaGermany’s four biggest carmakers all lost ground in China in the second quarter of 2026, as domestic brands press their advantage in a cooling market. Volkswagen Group’s China deliveries fell 36.6% in the quarter, Porsche’s fell 28%, Mercedes-Benz’s fell 19%, and BMW’s fell 13.5%.
Over the first half of the year the ranking shifts: Porsche is down 28% and Mercedes-Benz down 14%, both roughly in line with their Q2 pace, while BMW’s H1 decline eases to 13% and Volkswagen Group’s narrows sharply to 2.3%, implying a much stronger first quarter that partly offset its Q2 slide.
Why it is happening
China’s economic growth has slowed and consumers have turned more cautious after a prolonged downturn in the property market, weighing on big-ticket purchases like cars. On top of that, an ongoing price war and a steady shift toward domestic brands are squeezing the German makers, whose Chinese rivals update model lineups faster, price more aggressively, and hold a stronger position in electric vehicles.
Pressure beyond China
The same domestic brands gaining share at home are expanding abroad. BYD, SAIC, Geely, Chery and Leapmotor have been growing quickly in Europe as well, according to JATO Dynamics and ACEA registration data, leaving German manufacturers defending share in their home market at the same time they are losing ground in the world’s largest one.
