Japan’s Toyota Motor sold more battery-electric vehicles in China than Germany’s Volkswagen brand in 2025 for the first time, though both companies remain minor players in the country’s fast-growing electric vehicle market, according to industry data.
Toyota delivered about 100,000 battery-electric cars in China last year, compared with roughly 85,000 sold by the Volkswagen brand, German newspaper Handelsblatt reported, citing figures from automotive data provider MarkLines. The milestone highlights shifting dynamics in a market long dominated by local manufacturers.
China is far more critical to Volkswagen’s global business than to Toyota’s. More than 40% of Volkswagen brand sales occur in China, making it the company’s largest single market, while China accounts for less than one-fifth of Toyota’s global sales. Despite that difference, Toyota increased the share of electric vehicles in its Chinese sales from 0.8% to 1.4%, even as overall deliveries rose to about 1.8 million units. Volkswagen’s EV share in China declined from 2.8% to 1.1%.
The shift is notable because Toyota has historically prioritised hybrids and hydrogen technologies over fully electric vehicles, pursuing what it calls a “multi-path” strategy. Volkswagen, by contrast, has invested heavily in battery-electric platforms and has committed to a predominantly electric future in key markets.
Even so, both companies trail domestic competitors by a wide margin. Chinese automaker BYD sold 190,712 battery-electric vehicles in December 2025 alone—more than the two global brands combined sold in China during the entire year.
Foreign manufacturers typically operate in China through joint ventures. Volkswagen sells vehicles through partnerships with FAW Group and SAIC Motor, as well as its majority-owned venture Volkswagen Anhui with JAC. The German brand’s total sales in China fell 8% in 2025, while its electric vehicle sales dropped by about half amid intense price competition from local rivals.
Toyota also relies on joint ventures, working with FAW and GAC Group. Its best-selling electric model in China, the bZ3X SUV developed with GAC, has gained traction since orders opened in March 2025 at a starting price equivalent to about £14,000. The model accounted for roughly 70% of Toyota’s EV sales in China and about 35% of its global electric deliveries, according to MarkLines data.
Globally, however, Volkswagen remains well ahead in electric vehicle volumes. The Volkswagen brand delivered about 382,000 battery-electric vehicles worldwide in 2025, representing 8.1% of its total deliveries. Toyota sold roughly 199,140 electric vehicles globally across its Toyota and Lexus marques, leaving fully electric models below 2% of its total sales of about 10.5 million vehicles.
