Automotive News Europe — 2025-01-14
Automotive Industry
Volkswagen Group’s global deliveries declined last year as weak electric vehicle demand and intense competition in the key Chinese market dragged on sales.
Deliveries fell by 2.3% to 9.03 m vehicles, VW said in statement on 14 January 2025.
VW Group’s brands include Audi, Porsche, Skoda as well as the VW marque.
Global sales of the group’s battery-electric vehicles were down 3.4% to 771,100.
VW said it is seeing encouraging order intake for EVs in Western Europe, citing demand for new models including the VW ID7, the Audi Q6 E-tron and Porsche’s Macan. The company said its BEV order bank in Western Europe stands at around 170,000 vehicles, up 88% year-on-year.
Sales of the group’s plug-in hybrid vehicles increased 5% to 270,000 last year on demand for second-generation plug-in hybrid drivetrains with pure electric ranges of up to 143 km, the automaker said.
US sales grow while China slumps, Europe is flat
VW’s issues are starkest in China, where overall deliveries fell 20% to 2.93 m last year amid what the automaker described as a “fierce price war.” China “continues to be characterized by a fierce price war between more than 120 competitors,” VW said, adding that it aims to sell 4 m vehicles annually in the world’s biggest auto market by 2030.
Deliveries were up 6.4% in North America, with 2% growth in the US.
In South America, sales jumped 15%. Demand in Europe remained at the previous year’s level of 3.77 m vehicles, VW said.
In the US, where President-elect Donald Trump has threatened tariffs, VW still does not offer any of the pickup trucks favored by local drivers. Both Porsche and Mercedes experienced a pickup in demand in the fourth quarter, fueling hopes that 2024 was a low point for Germany’s embattled automakers.
In September 2024, VW Group revised its sales forecast downwards to around 9 m because of challenges at its namesake brand, which launched a cost-cutting drive to boost profits amid rising competition and shrinking demand.
VW has been hit hard by disruptions in the industry including intensifying competition in China from local automakers led by BYD and cuts to EV subsidies in Europe.
CEO Oliver Blume has struggled to push through cost savings, particularly at the VW brand, where management and unions were locked in negotiations for months last year before agreeing on wide reaching measures to reduce capacity.
To boost sales, Blume will be looking to new technology partnerships with China’s Xpeng and US startup Rivian Automotive.
Even so, this year could prove difficult due to the threat of US tariffs, signs of persistent economic malaise in China and high living costs across Europe.
In 2024, the issues led to a wave of profit warnings, including from VW, Mercedes-Benz and BMW. It was a tough year in general for the German auto industry. Mercedes’ sales dipped 3% on weaker demand for its most expensive models in China and a drop in EV sales in Europe.
BMW’s deliveries slipped 4% amid parts issues, while Porsche sales declined 3%, led by a 28% slump in China.