Title: Decline in VW Group's Automobile Sales
Volkswagen, Europe's second-largest automaker, failed to meet its sales targets last year, selling 9.03 million vehicles, a 2.3% decrease from the previous year. This performance was described as solid by sales chief Marco Schubert, who cited intense competition and numerous model changes as reasons for the slump. The company had initially aimed to exceed 9.2 million vehicles in 2024, but abandoned that goal by September.
Volkswagen's sales struggles are particularly evident in the Chinese market, where they dropped by 10% to 2.93 million vehicles. This decline is attributed to intense price competition, especially for electric vehicles, which is also impacting other global automakers. Volkswagen, however, is optimistic about its future in China, aiming to achieve 4 million annual vehicle sales by 2030 through strategic realignment, new technology partnerships, investment in new models, cost-cutting measures, and selling 4 million vehicles annually.
Audi, Volkswagen's subsidiary, reported a significant 12% drop in sales. The core Volkswagen Pkw brand saw a slight decrease of 1.4%, while Porsche experienced a 3% drop. However, Seat/Cupra recorded a 7.5% increase, and Skoda saw a 6.9% increase. Despite these gains, they were not enough to offset the declines in other brands.
Volkswagen's electric vehicle sales saw a 3.4% decrease to 744,800 vehicles last year. The share of electric vehicles in total sales remained at 8.3%. The USA and Europe witnessed a decline in electric vehicle sales, but Western Europe is showing signs of recovery, driven by new models like the VW ID.7, Audi Q6 e-tron, and Porsche Macan.
The fall in Volkswagen's sales can be attributed to multiple factors. Intense competition, reduced electric vehicle subsidies, weak electric vehicle demand, and high labor costs and overcapacity are some of the challenges the company is grappling with. To overcome these hurdles, Volkswagen is implementing strategies such as strategic realignment, new technology partnerships, investment in new models, and cost-cutting measures. These initiatives aim to help Volkswagen regain its competitive edge in the Chinese market and globally.
Despite Volkswagen's overall sales decline, its Chinese subsidiary, SAIC Volkswagen, continues to manufacture motor vehicles, with optimistic plans to achieve 4 million annual vehicle sales by 2030. The company's strategies for this include strategic realignment, new technology partnerships, investment in new models, cost-cutting measures, and a focus on selling 4 million electric vehicles annually in China.
