The Volkswagen group’s car sales declined in 2024, with a marked decline in China, an illustration of the dark year experienced by the manufacturer which will significantly reduce its production and its workforce in Germany.
( GETTY IMAGES NORTH AMERICA / BILL PUGLIANO )
The world’s second largest manufacturer behind Toyota delivered just over 9 million vehicles worldwide in 2024, down 2.3% year-on-year. The group’s eponymous brand represented more than half of sales (4.8 million), down 1.4%.
“2024 was a difficult year worldwide, with a weak economy, political challenges and strong competition, especially in China,” the world’s largest auto market, said Martin Sander, Volkswagen brand sales director.
Another worrying signal that the automotive sector is changing towards electric: demand for battery-powered cars has also fallen, with a drop in sales of 3.4% for the group and 2.8% for the brand.
Volkswagen sold 744,800 electric vehicles worldwide, or 8.3% of its sales.
The leading European manufacturer will cut more than 35,000 jobs by 2030 and significantly reduce its production capacity in Germany, without closing sites or forced layoffs, after an agreement reached in December with the IG Metall union.
The Volkswagen brand, one of ten in the group which also includes Porsche, Audi and Skoda, is the most in difficulty with profitability at half mast and a range of electric models which is struggling to establish itself.
The German manufacturer is particularly struggling in one of its main markets, China, where sales fell by 10% for the group and 8.3% for the brand.
One of the first foreign manufacturers to enter the Chinese market, Volkswagen no longer compares well with local competitors, who are cheaper and more advanced in the transition to electric.
In the Europe region, where the economy is slowing, the group’s sales stagnated, with a drop of 2% in Germany. On the other hand, they increased by 6.4% in North America and 14.7% in South America.
