Volkswagen Group Faces Sales Slump as Electric Vehicles Lose Popularity

Apr 11, 2024 10:19 PM EDT

VW VOLKSWAGEN AUTOMOBILE CAR — (Photo : PIXABAY/renehesse)

Volkswagen had a drop in overall brand sales in March compared to the prior year, with a particular reduction in sales of electric vehicles. Sales of all-electric vehicles fell by 24% in Europe, where this reduction was most noticeable.

Volkswagen, Sales Slump Led by Electric Vehicles

In Europe, where sales decreased by 24%, the reduction in BEV sales was especially notable. Volkswagen stated the rapid rise in China was insufficient to make up for the fall in Europe. As reported by Africa News, Volkswagen observed a notable decline in electric vehicle sales, particularly in Europe, where there was a 24% decrease.

Conversely, the Chinese market witnessed a significant surge, with electric vehicle sales soaring by 91% year-over-year. Despite this electric vehicle setback, Volkswagen managed to achieve an overall increase in vehicle deliveries, reaching 2.10 million units, marking a 3% growth. Key contributing markets to this growth include China, South America, and North America.

DPA International reports that Volkswagen reported 800,600 fewer vehicles sold globally in March, a 1.4% decline from the previous year. Notable drops were observed in important markets including Europe and China. On the other hand, sales in North America increased in tandem with the expansion of the Volkswagen and SEAT brands.

Nevertheless, sales of high-end vehicles like Audi and Porsche fell. The Volkswagen Group delivered 2.1 million vehicles in the first quarter, a 3% gain over the same period last year, notwithstanding March's swings. The primary contributors to growth were China, South America, and North America. However, sales in Western Europe, Germany, experienced a decline of 1%.

Volkswagen observed a positive trend in incoming orders for electric vehicles (EVs) in Western Europe from January to March. Compared to the same period previous year, orders for all-electric vehicles increased by more than 100%. Compared to before the sales boom, Volkswagen now has almost 160,000 more orders for electric vehicles.

Volkswagen Sales in USA

Electrive claims that the German automaker is optimistic in spite of the difficulties. From January to March, they observed an increase in inbound orders for battery electric cars (BEVs) throughout Western Europe. The number of all-electric model orders increased by 154% over the previous year, with almost 160,000 BEVs still on backorder.

Sales of electric vehicles (EVs) are noticeably declining in the US. With 13,200 EVs sold in Q1/2024 compared to the same time in 2023, Volkswagen sold almost 16% less EVs. Even with this drop, the US still has a larger percentage of electric (EVs) than either Europe or China (8.5%) of all Group vehicles shipped. Still, there are still a lot fewer EVs sold nationwide.

In the first quarter of 2024, the most popular Group models that were exclusively electric globally were Volkswagen ID.4/ID.5, Volkswagen ID.3, Audi Q4 e-tron including Sportback, and Skoda Enyaq including Coupé. The list also has Audi Q8 e-tron including Sportback, Volkswagen ID. Buzz, and Cupra Born.

Electrive also reported that Hildegard Wortmann, a Member of the Group's Extended Executive Committee for Sales, emphasizes the importance of Volkswagen's diversified product portfolio in mitigating fluctuations in demand, particularly in the electric vehicle segment.

The statement expresses confidence in the growth potential of electric vehicles, citing a significant increase in orders for all-electric models in Europe. Wortmann anticipates growth both domestically and globally in the electric vehicle segment throughout the year, buoyed by over 30 model launches across all drive types, providing momentum for Volkswagen in the coming months.