Volkswagen Cuts Sales Forecast Amid Challenging Auto Industry Conditions
Volkswagen has revised its full-year revenue outlook downward, citing an 'extremely challenging' environment for the automotive industry. The company now expects 2026 sales to be flat or down by up to 3%, a shift from earlier forecasts of growth. Despite this adjustment, Volkswagen maintained its operating-margin target and left net cash flow guidance unchanged. In Q2 2026, group revenue rose slightly due to financial services and higher pricing, but vehicle sales dropped significantly across the board—falling by nearly 10%. China was a particular concern for VW, with deliveries there plunging 36.6%, contrasting sharply against gains in North America and Europe. Volkswagen's CEO attributed ongoing challenges to geopolitical tensions, trade conflicts, regulatory pressures, volatile markets, and intensified competition. The company is responding through cost discipline and its Future Plan, which aims to streamline the product lineup by up to 50%.