Investing.com – Volkswagen (ETR: ) reported a decline in vehicle deliveries in 2024 that was partially supported by weak demand in China.
Globally, Volkswagen delivered 9.03 million vehicles last year, down 2.3% compared to the previous year. Although the number grew in North America and South America, it was reduced by a decrease of 10.3% in the Asia-Pacific region.
“This is due to the strong competitive environment in China,” Volkswagen said, pointing out that deliveries in the country – its largest car market – fell by 9.5%. The fall came despite sales of battery-electric cars rising 8% in China.
Regular deliveries in Europe also fell by 0.1%, VW said, although it noted that it remains the leader in electric sales in the region. Battery-electric order intake in Western Europe, in particular, has jumped about 88% year-on-year thanks to new models such as its VW ID.7 Tourer, the Audi Q6 e-tron, and the 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 on weak demand at home and in China offering low-cost options to consumers facing uncertainty. economic conditions.
Volkswagen is facing a “severe price war” in China, said Marco Schubert, a member of the company's Extended Marketing Committee. However, he added that “strategic alignment” and “constant portfolio adjustment” are starting to bear fruit, “with the result that in the last quarter we again approached the volume of the previous year in China.”
In September, Volkswagen cut its 2024 forecast by about nine million, citing challenges to its brand name despite the sector's pressure to cut costs and shore up its profits.