{"id":13218,"date":"2026-07-13T07:05:00","date_gmt":"2026-07-13T03:05:00","guid":{"rendered":"https:\/\/omanet.om\/news\/business\/volkswagens-troubles-originated-in-china\/"},"modified":"2026-07-13T11:11:37","modified_gmt":"2026-07-13T07:11:37","slug":"volkswagens-troubles-originated-in-china","status":"publish","type":"post","link":"https:\/\/omanet.om\/fa\/news\/business\/volkswagens-troubles-originated-in-china\/","title":{"rendered":"Volkswagen&#8217;s Challenges Originating in China: What Investors Should Know for Future Business Strategies"},"content":{"rendered":"<style>\r\n@keyframes hitv3sog-fadein{from{opacity:0;transform:translateY(14px)}to{opacity:1;transform:translateY(0)}}\r\n@keyframes hitv3sog-slideup{from{opacity:0;transform:translateY(20px)}to{opacity:1;transform:translateY(0)}}\r\n@keyframes hitv3sog-pulse{0%,100%{box-shadow:0 0 14px #dc262688}50%{box-shadow:0 0 32px #dc2626,0 0 60px #dc262655}}\r\n@keyframes 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style=\"animation:hitv3sog-slideup 0.7s ease both;animation-delay:0.3s;\">\u0628\u0631\u0646\u062f \u062e\u0648\u062f \u0631\u0627 \u0628\u0627 \u0631\u0627\u0647\u06a9\u0627\u0631\u0647\u0627\u06cc \u062f\u06cc\u062c\u06cc\u062a\u0627\u0644 \u0633\u0641\u0627\u0631\u0634\u06cc \u06a9\u0647 \u0628\u0631\u0627\u06cc \u062a\u0628\u062f\u06cc\u0644 \u0628\u0627\u0644\u0627 \u0648 \u062a\u0633\u0644\u0637 \u0628\u0631 \u0628\u0627\u0632\u0627\u0631 \u0637\u0631\u0627\u062d\u06cc \u0634\u062f\u0647\u200c\u0627\u0646\u062f\u060c \u062a\u0648\u0627\u0646\u0645\u0646\u062f \u06a9\u0646\u06cc\u062f.<\/div>\r\n    <div class=\"hitv3sogbl\"><div class=\"hitv3sogbi\"><span style=\"display:inline-block;width:5px;height:5px;border-radius:50%;background:#dc2626;flex-shrink:0;margin-right:7px;\"><\/span><span>\u0637\u0631\u062d\u200c\u0647\u0627\u06cc \u0648\u0627\u06a9\u0646\u0634\u200c\u06af\u0631\u0627 \u0628\u0631\u0627\u06cc \u0631\u0634\u062f \u0633\u0627\u062e\u062a\u0647 \u0634\u062f\u0647\u200c\u0627\u0646\u062f<\/span><\/div><div class=\"hitv3sogbi\"><span style=\"display:inline-block;width:5px;height:5px;border-radius:50%;background:#dc2626;flex-shrink:0;margin-right:7px;\"><\/span><span>\u0628\u0627\u0631\u06af\u0630\u0627\u0631\u06cc \u0633\u0631\u06cc\u0639 \u0628\u0627 \u0627\u062a\u0648\u0645\u0627\u0633\u06cc\u0648\u0646 \u0647\u0648\u0634\u0645\u0646\u062f<\/span><\/div><\/div>\r\n  <\/div>\r\n  \r\n  <div class=\"hitv3sogct\">\r\n    <button class=\"hitv3sogbtn\" style=\"animation:hitv3sog-pulse 2.5s ease-in-out infinite;animation-delay:1s;\">\u0648\u0628\u200c\u0633\u0627\u06cc\u062a \u0631\u0627\u06cc\u06af\u0627\u0646 \u062e\u0648\u062f \u0631\u0627 \u0628\u0633\u0627\u0632\u06cc\u062f <span style=\"opacity:.9;\">\u2192<\/span><\/button>\r\n    <div class=\"hitv3sogbr\">\u0633\u0631\u0632\u0645\u06cc\u0646 \u0647\u06cc\u062a<\/div>\r\n  <\/div>\r\n<\/a>\r\n<\/div>\n<p>Volkswagen is grappling with significant challenges globally, prompting the company to announce a potential reduction of its vehicle lineup by up to 50%. A considerable portion of its difficulties can be traced back to the Chinese market.<\/p>\n<p>As the world\u2019s second-largest automaker, Volkswagen historically thrived in China, the largest automobile market, for over four decades. For many years, its joint ventures and production facilities in the country accounted for more than half of its global profits, enabling the company to offer competitive salaries and benefits to its extensive workforce in Germany.<\/p>\n<p>However, Volkswagen\u2019s sales in China experienced a sharp decline last year, plummeting by one-third compared to 2019. This downturn is primarily attributed to the company\u2019s sluggish transition to electric vehicles (EVs), resulting in a further 33% drop in sales during the second quarter of this year\u2014an alarming trend amid an already slowing economy and contracting car market.<\/p>\n<p>The company now faces intense competition from Chinese manufacturers, not only in China but also in international markets. Chinese automakers are making significant inroads in regions like Latin America and Africa, where Volkswagen has traditionally held a leading position. Additionally, in the European Union, Chinese companies surpassed Japanese automakers in market share earlier this year. The rapid rise of these low-cost alternatives is exerting considerable pressure on Volkswagen and other European automakers to reduce their prices, further eroding profit margins.<\/p>\n<p>While Volkswagen has not revealed specific strategies for reducing its model offerings, it aims to manufacture 9 million vehicles annually, a reduction from previous targets of 12 million pre-pandemic and 10 million more recently. Reports from German media indicate that the company is preparing to cut as many as 100,000 jobs by the decade&#8217;s end and may close four factories in Europe.<\/p>\n<p>Volkswagen&#8217;s challenges in China stem partly from decisions made years ago. Nearly two decades ago, the company&#8217;s European executives displayed skepticism about the Chinese government&#8217;s push for electric vehicle adoption. Unlike local manufacturers that aligned with government strategies, Volkswagen delayed developing electric models until a clear demand emerged among Chinese consumers.<\/p>\n<p>In contrast, Chinese automakers benefited from substantial low-interest loans from state-controlled banks and financial support from local governments, enabling them to navigate financial challenges more effectively.<\/p>\n<p>This year, Volkswagen launched its ID. Unyx 07, the first of several fully electric models developed in China, equipped with advanced connectivity features. Ralf Brandst\u00e4tter, CEO of Volkswagen Group China, expressed optimism regarding the company\u2019s revamped product lineup, citing an unprecedented product offensive with 20 new smart and electrified models.<\/p>\n<p>Despite these efforts, the introduction of new models is occurring too late. The Chinese government offered substantial subsidies for EV purchases in 2024 and 2025, leading many consumers to already acquire electric vehicles. Additionally, these subsidies were significantly reduced at the beginning of this year, which negatively impacted the overall market.<\/p>\n<p>Industry experts, such as Stephen Dyer from AlixPartners, highlight that foreign automakers like Volkswagen have struggled to compete in the EV market. The company&#8217;s attempts to convert existing gasoline-powered models to electric vehicles left it unprepared for the rapid surge in EV adoption, particularly following Tesla&#8217;s significant market presence in China since 2020.<\/p>\n<p>A clear trend has emerged where companies like Tesla and BYD, which sell electric and hybrid vehicles, dominate the market, while multinationals like Volkswagen continue to rely heavily on gasoline-powered cars. The demand for non-electric cars in China has significantly tanked this year, amplifying the challenges faced by traditional automakers.<\/p>\n<p>Volkswagen&#8217;s market position in gasoline-powered vehicles has seen a slight increase; however, with over 60% of new cars in China now being electric or plug-in hybrids, the company\u2019s marginal gains in the gasoline segment have not offset its overall decline in sales.<\/p>\n<p>Cui Dongshu, secretary-general of the China Passenger Car Association, stated that Volkswagen&#8217;s troubles are largely a result of its slow adaptation to market changes. Furthermore, a downturn in the housing market has hindered many Chinese consumers from purchasing new vehicles, leading to excess manufacturing capacity that is subsequently exported. As a result, China\u2019s car exports surged to 8 million last year, up from just 1 million in 2020, with projections of 12 million for this year.<\/p>\n<p>While Volkswagen has made strides, such as building a large electric vehicle factory in Hefei and establishing a design center to better tailor vehicles for the Chinese market, it continues to lag behind in mastering software and advanced electronic technologies. Often adhering to longer testing protocols, Volkswagen&#8217;s approach contrasts with the rapid deployment of innovative technologies by Chinese competitors.<\/p>\n<p>Chinese automakers have managed to offer more advanced electronic features at lower prices by minimizing investment in performance-enhancing components traditionally emphasized by German engineers. David Zhang, dean of vehicle technology research, pointed out that Volkswagen has fallen behind in creating user-friendly technological interfaces in its vehicles.<\/p>\n<p>Looking ahead, Volkswagen aims to leverage its China operations as both an export hub and a technology source for developing markets. Brandst\u00e4tter emphasized the potential for Volkswagen China to serve as a significant player in the Global South.<\/p>\n<p>In a notable development, Volkswagen began exporting its Cupra Tavascan SUV from China to Europe in 2024. However, the company clarified that it does not intend to export other models produced in China to Europe or the United States.<\/p>\n<p>Volkswagen and other German automakers face a fundamental dilemma: their mastery of internal combustion engine technology is becoming increasingly irrelevant in a market rapidly transitioning to electric mobility. As Michael Dunne, a veteran automotive consultant, stated, they excel at an aspect of the industry that is swiftly falling out of favor.<\/p>\n<p><style>\r\n@keyframes hitl8gak-fadein{from{opacity:0;transform:translateY(14px)}to{opacity:1;transform:translateY(0)}}\r\n@keyframes hitl8gak-slideup{from{opacity:0;transform:translateY(20px)}to{opacity:1;transform:translateY(0)}}\r\n@keyframes hitl8gak-pulse{0%,100%{box-shadow:0 0 14px #dc262688}50%{box-shadow:0 0 32px #dc2626,0 0 60px #dc262655}}\r\n@keyframes hitl8gak-shimmer{0%,100%{opacity:0.3;transform:scaleX(0.4)}50%{opacity:1;transform:scaleX(1)}}\r\n@keyframes hitl8gak-glow{0%,100%{opacity:0.6}50%{opacity:1}}\r\n@keyframes hitl8gak-badge{from{opacity:0;transform:scale(0.8)}to{opacity:1;transform:scale(1)}}\r\n<\/style><style>\r\n.hitl8gakw{container-type:inline-size;width:100%;max-width:970px;margin:0 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\u0647\u0648\u0634\u0645\u0646\u062f \u0633\u0627\u062e\u062a\u0647 \u0634\u062f\u0647 \u0628\u0631\u0627\u06cc \u06a9\u0633\u0628 \u0648 \u06a9\u0627\u0631 \u0634\u0645\u0627<\/span><\/div><\/div>\r\n  <\/div>\r\n  \r\n  <div class=\"hitl8gakct\">\r\n    <button class=\"hitl8gakbtn\" style=\"animation:hitl8gak-pulse 2.5s ease-in-out infinite;animation-delay:1s;\">\u0645\u0634\u0627\u0648\u0631\u0647 \u0631\u0627\u06cc\u06af\u0627\u0646 \u062f\u0631\u06cc\u0627\u0641\u062a \u06a9\u0646\u06cc\u062f <span style=\"opacity:.9;\">\u2192<\/span><\/button>\r\n    <div class=\"hitl8gakbr\">\u0633\u0631\u0632\u0645\u06cc\u0646 \u0647\u06cc\u062a<\/div>\r\n  <\/div>\r\n<\/a>\r\n<\/div><br \/>\n<\/p>\n<p><strong>\u062a\u062d\u0644\u06cc\u0644 \u0648\u06cc\u0698\u0647 \u0627\u0632 \u0639\u0645\u0627\u0646\u062a | \u0628\u0627\u0632\u0627\u0631 \u0639\u0645\u0627\u0646 \u0631\u0627 \u06a9\u0634\u0641 \u06a9\u0646\u06cc\u062f<\/strong><\/p>\n<p>Volkswagen&#8217;s drastic model reductions and struggles in China signal <strong>potential risks for global supply chains<\/strong> and established automakers, creating a <strong>window of opportunity for local competitors<\/strong> and emerging markets like Oman to capitalize on shifting consumer preferences towards eco-friendly vehicles. Smart investors should consider <strong>aligning with innovative automotive technologies<\/strong> and local partnerships, fostering a rapid transition to electrification that may redefine the regional market landscape.<\/p>\n<p><\/p>","protected":false},"excerpt":{"rendered":"<p>Volkswagen is facing severe challenges, particularly in China, where sales have plummeted by a third since 2019. The company plans to halve its model offerings, aiming to produce 9 million vehicles annually. Slower adaptation to electric vehicles has hindered its competitiveness against local firms.<\/p>","protected":false},"author":10,"featured_media":13219,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[114],"tags":[364,4444,3151],"class_list":["post-13218","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-china","tag-electric-cars","tag-volkswagen"],"jetpack_featured_media_url":"https:\/\/omanet.om\/wp-content\/uploads\/2026\/07\/3451158.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/omanet.om\/fa\/wp-json\/wp\/v2\/posts\/13218","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/omanet.om\/fa\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/omanet.om\/fa\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/omanet.om\/fa\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/omanet.om\/fa\/wp-json\/wp\/v2\/comments?post=13218"}],"version-history":[{"count":1,"href":"https:\/\/omanet.om\/fa\/wp-json\/wp\/v2\/posts\/13218\/revisions"}],"predecessor-version":[{"id":13220,"href":"https:\/\/omanet.om\/fa\/wp-json\/wp\/v2\/posts\/13218\/revisions\/13220"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/omanet.om\/fa\/wp-json\/wp\/v2\/media\/13219"}],"wp:attachment":[{"href":"https:\/\/omanet.om\/fa\/wp-json\/wp\/v2\/media?parent=13218"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/omanet.om\/fa\/wp-json\/wp\/v2\/categories?post=13218"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/omanet.om\/fa\/wp-json\/wp\/v2\/tags?post=13218"}],"curies":[{"name":"\u0648\u0631\u062f\u067e\u0631\u0633","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}