Volkswagen battles slumping sales and stock decline amid EV market struggles
Volkswagen is facing challenges on multiple fronts as its market position weakens and financial pressures grow. The company's share price has dropped by nearly 19% since January, closing at €86.04 on Friday. Despite efforts to strengthen its electric vehicle (EV) lineup, sales in North America fell by 10% in 2025, while the broader US EV market remained sluggish.
The automaker's struggles extend beyond stock performance. German auto exports to China have collapsed, falling to just €13.6 billion—less than half their 2022 value. To ease internal strain, Volkswagen will pay employees a €1,250 bonus in May, aiming to boost morale amid cost-cutting measures.
On the technology side, Volkswagen's new zonal vehicle architecture (SDV) has cleared rigorous endurance tests. The system reliably manages critical functions, including all-wheel drive and traction control. This platform will underpin future EVs in Western markets, serving as a key part of the company's long-term strategy. Meanwhile, Volkswagen is testing the steering-wheel-free Gen.Urban concept in real urban traffic in Wolfsburg. The move signals a push toward advanced mobility solutions. Additionally, Škoda—part of the Volkswagen Group—will launch the compact electric SUV Epiq in autumn 2026, expanding the brand's EV offerings. To counter financial pressure, the company is enforcing strict cost controls and increasing local production in key regions. However, its US EV market share has not grown significantly since the Rivian partnership announcement, with no detailed figures available. The overall US EV sector has stagnated as policy shifts favour hybrid vehicles instead.
Volkswagen's latest measures—from bonuses to cost-cutting and new EV launches—aim to stabilise its position. The SDV platform and Gen.Urban concept highlight its focus on innovation, but declining exports and weak US sales present ongoing hurdles. The company's next steps will determine whether it can regain momentum in a shifting market.
