Volkswagen Group China

Volkswagen Group China (VGC; Chinese: 大众汽车集团（中国）) is the Chinese subsidiary of the German automotive concern Volkswagen Group in the People's Republic of China.

Volkswagen Group China sold to sell around 2.9 million cars in the Chinese market in 2024 and was largest car brand in China by sales until 2022, when it was overtaken by BYD Auto. The Chinese market is Volkswagen's second-largest market, accounting for around 30% of Volkswagen's global sales in 2024. Operations of Volkswagen in China include the production, sales and services of whole cars, parts and components, engines and transmission systems, and the sales and service of imported cars. The company's locally manufactured and imported vehicles are sold under various brand names such as Volkswagen, Audi, Škoda, Bentley, and Lamborghini in China. Its market share has declined in the 2020s due to the rapid adoption of electric vehicles and increasing competition from Chinese brands, falling from 19% in 2019 to 14.5% in 2024.

Volkswagen Group China is the largest, earliest, and the most successful international partner in China's automotive industry. It started its connection with China as early as in 1978, and has been taking the leading position in the Chinese automotive market for more than 25 years. Its first joint venture in China, Shanghai Volkswagen Automotive Co., Ltd., was established in October 1984. This joint venture, now called SAIC Volkswagen. was in the process of building an electric-car plant in Anting, near Shanghai by late 2018; it was expected to make 300,000 e-vehicles per year, starting in 2020.

The second joint venture, FAW-Volkswagen Automotive Company Ltd. was established in Changchun in February 1991. It manufactures VW and Audi cars. In 2018, an executive with FAW-Volkswagen's Audi division said that two million China-made Audi cars will be sold in the country by 2020. As of the end of 2017, the total to date was 777,000.