German auto giant VW raises concerns over sharp declines in vehicle deliveries

Volkswagen Group’s vehicle deliveries declined 2.3% to 9.03 million in 2024 because of falling sales in China, according to a recent report.

The group includes car brands Volkswagen, Audi, Bugatti, Seat, Skoda, and Porsche.
Battery electric vehicle (BEV) sales fell 3.4% to 744,800 units in 2024 while BEV sales in China, the group’s largest sales market, rose 12% to 40,100.

Volkswagen Group’s deliveries in China declined 9.5% to 3.2 million; deliveries to Europe fell 0.4% to approximately 3.3 million units, and deliveries to North America climbed 6.4% to a little over 1 million units. Electric vehicles (EVs) accounted for 8.3% of the group’s total sales.

The group’s deliveries of Volkswagen-branded vehicles declined by 1.4% to 4.8 million in 2024 due to declining sales in China.

2024: Year of turmoil for VW

Volkswagen (VW), one of the world’s leading automakers, faced a significant challenge to finalize its financial strategy for the year amid prolonged and tense negotiations with unions over workforce reductions and operational streamlining in its German factories.

Volkswagen had originally said it was considering completely shuttering production sites in Germany, which would have been an unprecedented move in the carmaker’s 87-year history.

In response, approximately 100,000 workers staged escalating strikes across nine factories in December, protesting plans that included potential plant closures and job cuts.

These strikes and the fierce negotiations culminated in an agreement aimed at saving approximately €4 billion annually while attempting to balance cost-efficiency with worker protections.

However, Europe’s leading automotive giant is still struggling to fully address the competitive pressures of a rapidly evolving global market, the transition to electric vehicles, and rising operational costs, which continue to challenge its long-term stability.