Volkswagen loses 5.8 billion euros in Q3 as China deliveries fall almost 40%

Volkswagen lost 5.8 billion euros in July to September 2026, about Rs 1.79 trillion at today's rate of Rs 308.48 per euro, against a 1.1 billion euro loss a year earlier. Sales fell 6.3% to 75.3 billion euros and worldwide deliveries dropped 14.3%, with deliveries in China down almost 40%, AFP reported via Business Recorder on Thursday 29 October.

Volkswagen Q3 2026 in numbers

Why Europe's biggest carmaker is losing money

China. For decades China was Volkswagen's biggest profit engine. Now Chinese brands such as BYD sell cheaper electric cars with more technology, and German brands are losing ground fast in the world's largest car market.

Writedowns. About 8 billion euros of one-off charges hit the quarter. Last month VW warned of a 10 billion euro hit to annual profit, mainly from writing down its stake in Porsche, which is also struggling in China.

The cost of going electric, which every established carmaker is carrying.

Chief financial officer Arno Antlitz said a 3.8% underlying margin is "not enough in the long term" and that the company's ability to fund future investment is at stake. "We no longer have unlimited time," he said. "What matters now is swift and consistent implementation."

120,000 jobs to go by 2030

Volkswagen plans to cut 120,000 jobs across the group by 2030, a restructuring it expects to cost 31 billion euros.

What it means in Pakistan

Volkswagen does not assemble cars in Pakistan, and its brands (VW, Audi, Porsche, Skoda) reach buyers here mainly through imports, which carry heavy duties. The bigger story for Pakistani car buyers is the one hurting VW: Chinese carmakers. Chinese brands such as Changan, Haval, MG, BYD and Deepal now make up a growing part of the Pakistani market, often with local assembly and lower prices than the Japanese incumbents. Compare current ex-factory prices on our car prices page and work out instalments with the car loan calculator.

For importers, the euro rate matters: check today's euro to rupee rate before you budget for a European car or parts, and see what you would pay in duties with our car registration tax calculator.