Volkswagen record sales decline in 2024 but EV surge in Europe offers hope

Volkswagen’s global sales fell 2.3% in 2024, hitting just over 9 million vehicles, as it struggled with rising costs at home and fierce competition in China. This marks a challenging year for the German automaker, which has been caught in a price war in its largest market, China. Sales in Germany dipped by 2.2%, while those in China dropped by 10%.

Despite the overall decline, electric vehicle (EV) sales performed better. In China, Volkswagen’s EV sales rose by 8%, contrasting with a global decline of 3.4%. The company has been pushing its electric future as a way to offset the challenges faced by its traditional vehicles.

The company had already reduced its 2024 sales forecast to around 9 million cars back in September, citing the need for cost-cutting measures. Its flagship brand launched this cost-cutting drive in a bid to boost profits, but it faced intense competition and weakening demand.

German luxury carmakers, including Mercedes-Benz, BMW, and Porsche, also struggled in both their home markets and China. Wealthier consumers hesitated to buy as economic uncertainty and slower-than-expected EV sales weighed on the industry.

Meanwhile, Volkswagen’s Skoda and SEAT/CUPRA brands outperformed its main brand, with sales up by 7%, compared to a 1.4% drop for Volkswagen Passenger Cars.

Volkswagen plans to release 30 new models across its group in 2025, including the VW ID.7 Tourer, Audi Q6 e-tron, and Porsche Macan Electric. The company has also seen a surge in orders in Western Europe, with intake up 88% year-on-year, fueled by the arrival of new models.

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