Investing.com – Volkswagen (ETR:) has reported a decline in vehicle deliveries in 2024, driven in part by sluggish demand in China.
Globally, Volkswagen delivered 9.03 million cars last year, down 2.3% from the previous year. Although the figure grew in both North and South America, it was offset by a drop of 10.3% in the Asia-Pacific area.
“This was caused by the intense competitive situation in China,” Volkswagen said, noting that deliveries in the country – the company’s largest auto market – decreased by 9.5%. The drop came even though sales of battery electric cars rose 8% in China.
Steady deliveries in Europe also fell 0.1%, VW said, although it noted it remains the leader in all-electric vehicle sales in the region. Order intake for battery electric vehicles in Western Europe, in particular, has increased by around 88% year-on-year thanks to new models such as its 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, in a sign of the pressures automakers are facing both from weaker demand in the country and by local rivals in China that offer low-cost options to consumers struggling with uncertainty. economic conditions.
Volkswagen is facing a “fierce price war” in China, said Marco Schubert, a member of the company’s expanded Executive Committee for Sales. However, he added that a “strategic restructuring” and “constant portfolio optimization” are beginning to bear fruit, “with the result that in the last quarter we returned close to the previous year’s volume in China.”
In September, Volkswagen cut its 2024 forecast to about nine million, citing challenges at its namesake brand despite the division’s efforts to cut expenses and boost profits.