Paragraph - VW Group sells fewer cars
The Volkswagen Group delivered fewer vehicles worldwide in the last quarter compared to one year ago. The group delivered 2,243,700 vehicles of all brand models from April to June, a 3.8% decrease compared to the same period in the previous year, as reported by the Wolfsburg-based company. Audi and China were the main contributors to this decline.
At Audi, sales dropped by 11.3%. The Volkswagen brand suffered a 5.2% decrease. However, Skoda and Seat/Cupra saw growth. The business is particularly weak in China. In the past three months, 19.3% fewer vehicles were delivered there.
"As anticipated, we have prioritized sustainable value creation in the very intense competitive environment in China over higher volumes to achieve our long-term strategic goals," said Audi Sales Chief Hildegard Wortmann, who is also responsible for the sales division in the overall group.
In Western Europe, sales decreased by 5.1%, while in North America, they decreased by 10.8%. This could not offset the decline in China. Wortmann remains optimistic for the rest of the year, however. "Based on the ramp-up of several important models in the second half of the year, we still expect a slight increase in global deliveries for the full year 2024."
E-car sales falter
There was a setback in e-car sales. In the first half of the year, the group delivered 317,200 electric models worldwide, 4,400 fewer than in the same period in 2023. The main reason was the weak demand in Europe and the USA, where 15% fewer electric cars were delivered in each region. The order backlog for electric cars is slightly higher in Western Europe, at around 170,000.
The group corrected its forecast for the full year downward the previous evening. Audi is the main contributor. Due to the weak demand for the e-tron Q8 model, the VW subsidiary is now considering prematurely stopping production of the model in Brussels. The site is to be restructured. The end of this process could be the closure of the plant if no alternatives are found. In the first half of the year, 17,900 units of the e-tron Q8 were delivered.
- The Automotive industry in China has posed challenges for the Volkswagen Group, leading to a significant decrease in vehicle deliveries from the company based in Wolfsburg.
- Despite the lower sales in China, brands like Škoda and Seat/Cupra managed to show growth within the Volkswagen Group.
- The decline in global vehicle deliveries for the Volkswagen Group in the last quarter was partly due to a decrease in sales in Western Europe and North America.
- The Audi brand, in particular, suffered a significant drop in sales, with China being a significant contributor to this decline.
- The shift towards sustainable value creation in China by Audi, as noted by Sales Chief Hildegard Wortmann, has resulted in fewer vehicles being delivered in the region.
- In an attempt to counteract the weak demand for electric cars, Volkswagen subsidiary Audi is considering stopping the production of the e-tron Q8 model prematurely at its Brussels plant.
- Western Europe has a slightly higher order backlog for electric cars compared to other regions, with around 170,000 orders awaiting fulfillment.
