Volkswagen was overtaken by Geely Auto in China vehicle sales last year, dropping to third place in the market after losing its long-held dominance to BYD in 2024, reported Reuters.

Legacy foreign automakers including Volkswagen, General Motors and Toyota have been losing ground to Chinese rivals. Analysts said the slower transition to electric vehicles has left them vulnerable as consumers increasingly favour EVs supported by state subsidies.

Data from the China Passenger Car Association showed Volkswagen's two joint ventures with FAW and SAIC Motor held a combined 10.9 per cent retail share in 2025, down from 12.2 per cent the previous year.