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(Sharecast News) - Vehicle deliveries at Volkswagen Group fell year-on-year in the first quarter on the back of significant falls in the US and China amid what the company described as a "very challenging" trading environment.
Despite the decline, the company said that the Iran war has not had a significant impact on volumes despite it having led to disruptions in directly affected markets.
The company, which alongside the eponymous VW brand also owns nine other brands including Audi, `koda, SEAT, Porsche, Lamborghini and Bentley, reported group deliveries of 2.05m over the first three months of 2026, down 4.0% compared with the year before.
Sales in West Europe, by far its largest market, rose 4.2% to 848,500, while Central and Eastern European deliveries jumped 7.6% to 135,300.
However, sales in its second-largest market, China, tumbled 14.8% to 548,700 and sank 13.3% in North America to 205,500, with demand under pressure in both markets after the expiration of government subsidy programmes for electric vehicles.
Among its smaller regions, deliveries in South America gained 7.0% year-on-year, but fell 8.0% in Asia-Pacific (excluding China) and by 5.3% across the Middle East and Africa.
"The first quarter of 2026 was once again characterised by very challenging economic and geopolitical conditions," said Marco Schubert, the group's head of sales.
Looking ahead, Schubert said the group expects For the coming months, we expect further positive momentum from key new models such as the Electric Urban Car Family in Europe and new locally developed electric models in China."
Volkswagen shares in Frankfurt were down 1.6% at 87.58 by 1335 BST.