Investing.com - Volkswagen (ETR:VOWG) has reported a decrease in vehicle deliveries in 2024 that was fueled in part by sluggish demand in China.
Globally, Volkswagen delivered 9.03 million cars last year, down by 2.3% compared to the prior year. Although the figure grew in both North America and South America, it was offset by a 10.3% drop in the Asia-Pacific area.
"This was triggered by the intense competitive situation in China," Volkswagen said, flagging that deliveries in the country -- the firm's largest auto market -- declined by 9.5%. The fall came despite sales of battery-electric cars rising by 8% in China.
Constant deliveries in Europe also fell by 0.1%, VW said, although it noted that it remains the leader in all-electric sales in the region. Battery-electric order intake in Western Europe, in particular, has jumped by around 88% year-on-year thanks to new models like 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 carmakers are encountering from both weaker demand at home and local rivals in China offering low-cost options to consumers grappling with uncertain economic conditions.
Volkswagen is facing a "fierce price war" in China, Marco Schubert, Member of the company's Extended Executive Committee for Sales, said. However, he added that a "strategic realignment" and "consistent portfolio optimization" are beginning to bear fruit, "with the result that in the final quarter we again approached the previous year's volume in China."
In September, Volkswagen slashed its 2024 forecast to roughly nine million, citing challenges at its eponymous brand despite a push by the division to reduce expenses and bolster its profits.