Volkswagen is preparing for increased competition in China as the world's largest car market may shrink for the first time since 2018, said the head of the German automaker's division in the region.

Ralph Brandstätter, CEO of Volkswagen Group China, told FAZ on Wednesday that a market decline cannot be ruled out. The China Passenger Car Association expects the country's passenger car market to remain at the same level in 2026 after 24 million sales in 2025.

Brandstätter called this forecast the best-case scenario. Volkswagen has revised its long-term forecasts, now expecting annual sales of 26 million vehicles in China by 2030 compared to the previous forecast of 28 million.

The German automaker is working to maintain its position as the leading foreign manufacturer in China by launching dozens of new electric and hybrid models in partnership with local companies. Domestic brands have displaced Volkswagen from its long-standing market leader position, although the company regained first place in the first quarter after the Chinese government stopped subsidizing electric vehicles, which affected competitors, including BYD.

Brandstätter acknowledged that market conditions have changed forever. "We definitely will not return to the super-profits of previous years," he said. "Those times are gone. Competition in China is now too fierce for that."

#MarketTurbulence , #GlobalEconomicNews , #AvtoNews

With us (in this group!), those (subscribers!) who are looking for fresh and relevant news usually stay, who do not want to browse through dozens of different websites and news publications, and can afford to read all the most interesting in one news feed!!! 😉

Enjoy your viewing!!! 😊

In the meantime, we will continue to search for fresh and interesting news. 😉