Volkswagen Lowers 2030 Sales and Profit Targets in China, Cuts Capacity

Volkswagen has lowered its 2030 sales target for the Chinese market to a maximum of 3.2 million vehicles, down from a previous target of 4 million, citing intensifying competition and slowing structural market growth. The company also revised its operating profit margin target to 4%–6%, significantly below the double-digit levels it previously achieved. Since 2023, Volkswagen has cut approximately 1.5 million units of production capacity in China by selling, closing, or repurposing five vehicle and engine plants and scaling back operations at its Anting facility. Its workforce in China has been reduced from around 90,000 to 70,000 employees. Meanwhile, Volkswagen is advancing its localized electric vehicle (EV) strategy, recently unveiling four new EV models globally across its three brands to strengthen its electrification push in China and capture greater market share.