Is Volkswagen going under?

Electric car news

Volkswagen’s business results in 2024 reveal a complex situation. The German manufacturer sold 4.8 million vehicles globally, marking a decline of 1,4% compared to 2023. A figure which hides significant disparities depending on the region and the type of engine.

Electric sales below expectations

The share of electric cars in total Volkswagen sales stood at 7,9% in 2024, showing a drop of 2,8% compared to the previous year. A worrying situation for the manufacturer which had set ambitious objectives from 2020. The sales results of the ID range since its launch in 2019 reached 1.35 million unitsdont 500 000 ID.3.

Geographical analysis: contrasting markets

The Chinese market, representing 46% of sales of the brand, recorded a drop of 8,3% with 2.2 million units sold. This decrease is explained by:

• The rise of local manufacturers offering more competitive vehicles
• Increased competition in the electric segment
• More advanced technological innovations among certain Chinese rivals

Europe is not spared with a decline in 1,7% has 1,25 million of vehicles. On the other hand, American markets are showing remarkable growth: +18,4% in North America and +21,1% in South America.

France: a positive exception

The French market is an exception in this mixed picture. In a national context in decline 3,2%Volkswagen maintains its position with 119,360 vehicles registered. The ID electric range even recorded an increase of 16% over the year 2024. The performances by model speak for themselves:

Prospects and challenges for 2025

Volkswagen’s strategy for 2025 revolves around an aggressive pricing policy on its electric models. Faced with demanding CAFE standards 25% electric sales in the product mix, the manufacturer will have to redouble its efforts. The ID.2, expected for 2026-2027could boost sales, but its impact will not be immediate.

The factors that weighed on 2024 persist:

• The removal of government aid in certain countries
• Persistent inflation impacting purchasing power
• High interest rates complicating financing

Volkswagen’s response involves a dual strategy: reduction in prices on the electric range and possible increase in prices for thermal models to promote the energy transition of its customers.

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