Volkswagen Group vehicle deliveries dropped 4% year-over-year, with 21% declines in the U.S. and 15% in China, citing tariffs and expired tax incentives as key pressures. The German automaker reported that European growth couldn’t offset losses in key markets, though it noted a slight market share gain in China despite the downturn. Tariffs and the end of federal subsidies for electric vehicles disrupted U.S. sales, while China’s weak consumer demand and economic uncertainty hampered performance. The slump reflects broader struggles in the auto sector, with rivals like Porsche and Mercedes-Benz also reporting delivery declines.

Analysts warn that sustained weakness in these regions could impact deal values and profit margins for global automakers. Volkswagen’s performance highlights vulnerabilities in its international expansion strategy amid shifting trade policies and slowing demand.