Volkswagen cut its sales and car delivery forecasts for the year and reiterated that it must do more to counter mounting industry headwinds that include geopolitical and trade conflicts, regulatory requirements, volatile markets and intensified competition.

The German automaker said it now expects full-year sales to land somewhere between flat and a 3% decline, having previously guided for flat to 3% growth, mainly due to steep volume declines in China after the total market in the country slumped 20% in the first half.

Deliveries are expected to fall between 3% and 7% on year from a previous forecast of flat unit deliveries, as the company adjusts expectations for the weakening Chinese market.

It still expects an operating margin of between 4% and 5.5% this year, up from the 2.8% it logged in 2025.