Investing.com – Volkswagen (ETR: ) reported a decline in vehicle deliveries in 2024, driven in part by weak demand in China.
Globally, Volkswagen delivered 9.03 million cars last year, down 2.3% compared to the previous year. Although the figure increased in both North and South America, it was offset by a 10.3% decline in the Asia-Pacific region.
“This was driven by the intense competitive situation in China,” Volkswagen said, noting that deliveries in that country – the company’s biggest car market – fell by 9.5%. The decline came despite an 8% increase in sales of battery electric cars in China.
Regular deliveries in Europe also fell by 0.1%, VW said, although it pointed out that it remains the leader in sales of all-electric vehicles in the region. Electric battery orders in Western Europe in particular jumped by around 88% year-on-year thanks to new models such as the VW ID.7 Tourer, Audi Q6 e-tron and Porsche Macan Electric.
In a statement, Volkswagen Group CEO Oliver Blume said the operating environment was “challenging” last year, a sign of the pressure automakers are facing from weaker demand at home and local rivals in China offering low-cost options to struggling consumers. uncertainty economic conditions.
Volkswagen is facing a “fierce price war” in China, said Marco Schubert, a member of the company’s Extended Executive Committee for Sales. However, he added that “strategic realignment” and “consistent portfolio optimization” are beginning to bear fruit, “with the result that in the last quarter we have again approached our year-ago volume in China.”
In September, Volkswagen cut its 2024 forecast to roughly nine million, citing challenges at its namesake brand despite the division’s efforts to cut costs and boost its profits.
