Volkswagen's China chief expects the passenger-car market to shrink about 20% in 2026.

Brandstaetter gave the estimate at an industry summit. Reuters reported that China's domestic vehicle sales fell for an eleventh consecutive month in August, even as the country's auto exports remained robust.

The forecast is an executive estimate rather than an official market projection. It nevertheless highlights pressure on established manufacturers as domestic demand weakens and price competition compresses profitability.