Berlin, January 14 – Volkswagen’s sales fell by 2.3% in 2024, totaling just over nine million vehicles. The German automaker announced this decline on Tuesday as it faces challenges in cutting costs at home and competing in a price war in China, its largest market.
In Germany, the company experienced a 2.2% drop in sales, while sales in China decreased by 10%. Volkswagen attributed this to a “fierce price war.”
However, sales of battery-electric vehicles performed better in China, increasing by 8%, even as global sales for electric vehicles fell by 3.4%.
In September, Volkswagen revised its 2024 sales forecast down to around nine million due to difficulties with its core brand. The brand has initiated a cost-cutting drive to enhance profits amid growing competition and declining demand.
Sales figures from Germany’s leading luxury car manufacturers, including Mercedes-Benz, BMW, and Porsche, showed they also faced significant challenges both at home and in China throughout 2024. Wealthier consumers have been cautious about making purchases amid economic uncertainty and slower-than-expected electric vehicle sales.
In contrast, the Skoda and SEAT/CUPRA brands outperformed Volkswagen Passenger Cars, reporting sales growth of about 7%. Volkswagen’s flagship brand experienced a decline of 1.4%.
The company plans to release 30 new models this year across its group. Additionally, Volkswagen reported an 88% increase in order intake in western Europe year-on-year, driven by new models like the VW ID.7 Tourer, Audi Q6 e-tron, and Porsche Macan Electric.
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