German automaker Volkswagen reported on Thursday that its 2024 vehicle deliveries declined by 1.4% year over year, primarily due to intense competition in China. Last year, the Volkswagen brand, which is a part of the bigger Volkswagen group that also includes Audi and Lamborghini, sold about 4.8 million cars globally, Reuters has reported. Deliveries dropped by 1.7% in Europe, the brand's second-largest market by volume, but grew by around 20% in North and South America. Sales in China, Volkswagen's most significant market, fell 8.3%, primarily due to fierce competition, political unrest, and a weak economy, the carmaker says. Volkswagen and unions came to an agreement in December to eliminate 35,000 employment at Volkswagen's German facilities by 2030. The cut should prevent factory closures in Germany, which Volkswagen had previously warned would be necessary, and save almost four billion euros annually in the medium run.
The competition from China is also hurting other European automakers. Citing sluggish demand in China, BMW cautioned investors in November that its performance for the year would not meet expectations.
In September, Stellantis, the company behind Jeep, Peugeot, and Fiat, also predicted that their performance would be negatively impacted by Chinese competition.