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 noted that the slower transition to electric vehicles has left these companies vulnerable as consumers increasingly favor EVs supported by state subsidies.

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