Volkswagen Stock: Global Sales Dip Amid EV Challenges

Volkswagen Group reported a notable decline in its global deliveries for 2024, with total vehicle sales dropping 2.3 percent to 9.03 million units. The automotive giant faced significant headwinds in China, its traditionally strongest market, where deliveries plunged nearly 10 percent amid intense price competition. However, the company demonstrated resilience in other key regions, achieving impressive growth of 15 percent in South America and a solid 6 percent increase in North America. Western European markets also showed modest improvement, with deliveries rising by 0.7 percent to 834,000 vehicles in the final quarter.

Electric Vehicle Setback

The company's electric vehicle segment experienced particular pressure, with EV deliveries declining by 3.4 percent to 744,800 units. This downturn was most pronounced in the United States, where electric vehicle sales plummeted by over 30 percent. The challenging performance in the EV sector meant that all-electric vehicles constituted only about one-twelfth of the group's total new vehicle sales, highlighting the ongoing hurdles in the transition to electric mobility. Despite these challenges, Volkswagen's stock showed resilience, gaining 1.3 percent to reach €92.06.