Volkswagen is closing its massive factory in China!

 Volkswagen's sales decline in China: 
📈2019: 4.23 million
📉2024: 2.93 million

A report by *Handelsblatt* claims the facility, already operating at a fraction of its capacity, will be completely shut down in the second half of 2025, with Passat production relocated to another nearby Nanjing plant. Volkswagen operates 14 factories in China: 5 with FAW, 8 with SAIC, and one through its Volkswagen Anhui joint venture with JAC Motors.

 Until 2019, Volkswagen sold one out of every two cars globally in China, but it has been heavily impacted by the shift to electric vehicles. Despite offering significant discounts on its ID series electric models, the company failed to generate expected demand, selling only 1.31 million vehicles in China in the first half of 2025.

The German giant hasn’t given up on China yet. Optimistic about 2026, Volkswagen aims to reverse the decline with its CMP platform-based ID. AURA, EVO, and ERA models developed with FAW. On the SAIC partnership front, efforts to revive Audi continue. Using IM Motors’ platform, Audi has developed a premium 'shooting brake' model called the Audi E5, set to hit the roads soon.