Volkswagen reported a 4% drop in global deliveries during the first quarter of 2026.
Weak demand in China and the United States weighed heavily on overall performance.
Deliveries declined 15% in China and 20.5% in the U.S., highlighting key market pressures.
The automaker faces intensifying competition from Chinese rivals such as BYD.
Tariffs and reduced electric vehicle incentives in the U.S. added further strain on sales.
Sales chief Marco Schubert pointed to challenging global conditions and a declining automotive market.
Premium brands Porsche and Audi also recorded significant delivery declines in China.
Rivals Mercedes-Benz and BMW face similar pressure amid aggressive pricing from local competitors.
