Volkswagen’s latest delivery figures offer a stark warning about the vulnerability of Germany’s industrial economy. The automaker recorded a 14.3% fall in global deliveries in the third quarter, its sharpest decline in more than four years, as the Chinese market that once fuelled its expansion continued to deteriorate.

The group delivered 1.89 million vehicles worldwide during the quarter. In China, its largest market, deliveries collapsed by 38.5%. Across the first nine months of the year, they fell 30.2%.

These figures expose a profound shift in the global automotive industry. For decades, German manufacturers relied on their engineering reputation, technological expertise and access to China’s expanding middle class.

That relationship is now under strain as domestic Chinese manufacturers produce increasingly competitive vehicles, particularly electric models, often at lower prices.

Volkswagen’s difficulties extend beyond China. Deliveries fell 5.8% in North America and 2.8% in Western Europe, while Central and Eastern Europe recorded a modest 1.4% increase.

The company’s battery-electric vehicle deliveries also declined by around 5%, despite nearly 20% growth in Europe. Porsche and Mercedes-Benz have reported similar weaknesses, suggesting that Volkswagen’s problems are part of a broader industrial challenge.

Germany’s carmakers now face a difficult reckoning. Their traditional advantages no longer guarantee success in a market being transformed by electrification and Chinese competition. Whether they can adapt quickly enough remains an open question.