BERLIN (Reuters) – Volkswagen on Tuesday reported a 2.3% drop in sales in 2024 to just over nine million vehicles, as it seeks to cut costs in Germany in the face of fierce competition from manufacturers in China, its main market.
The German carmaker’s sales in its home market fell 2.2%, while they fell 10% in China due to a “fierce price war”.
However, electric vehicle sales fared better in China, with growth of 8%, compared to a decline of 3.4% globally.
In September, Volkswagen lowered its sales forecast for 2024 to around nine million units due to difficulties faced by its eponymous brand, which launched a cost-cutting campaign to increase its profit in a context of increased competition and falling demand.
Sales of premium German carmakers, including Mercedes-Benz, BMW and Porsche, took a hit in Germany and China in 2024, data showed, as wealthier consumers delayed purchases amid uncertain economic conditions and due to slower-than-expected electric vehicle sales.
-The Skoda and Seat/Cupra brands outperformed Volkswagen Passenger Cars, with sales growth of around 7%, compared to a decline of 1.4% for the eponymous brand.
Volkswagen is launching 30 new models this year and said its orders in Western Europe were up around 88% from the previous year, driven by new models such as the VW ID.7 Tourer, Audi Q6 e-tron and the Porsche Macan Electric.
(Writing by Victoria Walderseem; French version Elena Smirnova, editing by Kate Entringer)
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