By Dominic Chopping
Volkswagen delivered fewer cars in 2024 as the automaker continued to be hit by intense competition in China that has seen rivals cut prices to win customers in its largest market.
The situation in China has sparked a price war among more than 120 competitors, with even new models being pushed onto the market at steep discounts, a company spokesperson said.
Volkswagen, which houses a stable of brands, said its group car deliveries fell 2.3% on year to 9.03 million in 2024, with deliveries in China down 9.5% to 2.93 million cars.
Rivals BMW and Mercedes-Benz also said this week that sales were held back in 2024 by the challenging Chinese market.
On a quarterly basis, Volkswagen group deliveries fell 0.8%, as a sharp drop in China offset gains in most other regions.
The German car maker has avoided engaging in a price war in China, preferring to stick to its pricing model and prioritizing profitability over higher volumes.
The company spokesperson said this tactic, along with the launch of new models, was starting to have a positive effect, but cautioned that difficulties will remain in the country this year.
"We estimate the market [will] continue to be challenging in 2025, however, we are fully prepared."
By 2030, Volkswagen aims to sell four million vehicles annually in China.
Deliveries of the group's battery-electric cars fell 3.4% on year, but the company said it remains by far the market leader in Europe with a 21% market share. Its order bank in western Europe stands at around 170,000 vehicles, it added. Next-generation plug-in hybrid cars that offer extended purely-electric ranges are experiencing increasing demand globally, it said.
Write to Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
01-14-25 0637ET