Audi
Among the German premium brands, Audi, part of the VW Group, posted the weakest performance in the year. It moved 1.7 million cars, down 12 percent from 2023, with geopolitical tensions and supply chain constraints cited as major factors by the company.
The overall decline of almost 12 percent, with electric models down around 8 percent, reflects a mix of tough economic conditions, fierce competition, and parts shortages. Audi noted that the influence of its new product lineup on global volumes is only gradually becoming clear.
In 2024, Tesla surpassed Audi in world sales for the first time, with Elon Musk’s company delivering about 1.8 million electric vehicles worldwide.
Audi pointed to rising competition in Europe and China and shortcomings in its electric range as contributors to the result.
Volkswagen Group, which includes Skoda, Cupra, Audi, Porsche, Bentley and Lamborghini, also finished the year with softer sales. The group sold 9.03 million cars globally, a 2.3 percent drop from 9.24 million the previous year, with the biggest decline occurring in China. Growth in North America and South America helped offset declines in Europe and China, where deliveries fell notably.
Volkswagen said that North American sales rose about 6 percent and South American sales grew roughly 15 percent, while Europe remained flat and China declined by about 10 percent.
BMW and Mercedes-Benz
Global sales for the BMW Group, which includes BMW, Mini, Rolls-Royce and the Motorrad motorcycle division, fell 4 percent to 2.45 million vehicles in 2024.
Demand weakened most in China, with volumes down about 13 percent.
In the electric car segment, BMW posted solid growth, selling about 426,600 BEVs worldwide in 2024, up around 14 percent from the previous year. In contrast, Mercedes-Benz saw electric vehicle sales down about 23 percent.
Overall, the year ended with a red ink concern for the group as a whole. The automaker reported 1.98 million passenger cars sold, a 3 percent drop, and 2.39 million vehicles including light commercial offerings, down 4 percent.
Stellantis
Stellantis, whose brands include Chrysler, Opel, Peugeot, Citroën, Fiat, Jeep, Dodge, Alfa Romeo, Maserati, Lancia, DS, Abarth, Ram Trucks and Vauxhall, reported its fourth-quarter 2024 results with vehicle sales down 9 percent from the same period a year earlier, totaling about 1.395 million units.
The downturn was sharper in Fiat, a member of the group, as Italian production fell 46 percent to the lowest level seen since 1956.
Chinese are waiting
As European automakers reel from softer performances and Volkswagen contemplates factory closures in Germany, Chinese buyers are showing renewed interest. Reuters cited a source familiar with Chinese government plans noting that authorities and automakers are closely watching German plants slated for closure and are especially interested in Volkswagen facilities. Manufacturing cars in Germany for sale across Europe could help Chinese electric vehicle makers bypass European duties.
Energy from Russia
The drop in European car sales is tied to several factors, including a shift in Chinese demand toward local brands and higher energy costs that press on European consumers. Analysts point to a broader fraying of ties with Russia, which has intensified production costs and reduced buyer activity. European automakers historically depended on the Chinese market, the world’s largest, and many built plants there to serve global demand. China has advanced its electric vehicle program, with local brands growing strong and outpacing European offerings in several segments, especially in leading EV categories. Experts note that European economies have faced supply disruptions from the pandemic and now contend with a shifting competitive landscape as China expands its EV leadership. Some observers say European governments are encouraging Chinese investment and deeper collaboration on platforms could follow. Chinese brands have become bolder and more interesting, while many European models remain comparatively conservative. The industry across major players like BMW, VW and Porsche faces similar headwinds, including the impact of the Russia-Ukraine conflict, rising energy costs, and a slower-than-expected rebound in demand.####