Tesla surpassed one of Germany’s most esteemed premium car brands, Audi, last year, despite falling short of its own vehicle sales expectations. In 2024, Volkswagen’s Audi sold 1.67 million vehicles, marking a 12% decline from the previous year. The brand faced increasing competition in Europe and China, coupled with weak demand for its electric models, which resulted in it falling behind Elon Musk’s Tesla. Tesla delivered 1.79 million vehicles last year, overtaking Audi.
However, Tesla’s year was not without challenges. The US company experienced its first annual decline in deliveries in over a decade and narrowly maintained its lead over China’s BYD as the top seller of fully electric vehicles. Tesla’s rapid expansion in the preceding years positioned the company to capitalize on any missteps by traditional automakers. Its Model Y sport utility vehicle is among the world’s best-selling cars and is set to receive a facelift this year.
Meanwhile, German car manufacturers are grappling with sluggish demand for luxury cars in China, where economic recovery remains uncertain and local manufacturers are moving upmarket. In Europe, electric vehicle (EV) sales have fallen short of expectations following the reduction of subsidies in several countries. These issues led to a series of profit warnings last year from major players including Volkswagen, Mercedes-Benz, and BMW.
Audi’s sales declined in key markets such as Germany, China, and North America. Deliveries of its fully electric models dropped by 8% to approximately 164,000 units. In response to slowing sales, manufacturers have begun scaling back production. Volkswagen has reduced capacity at its namesake brand, and Audi plans to close a site in Brussels due to poor demand for the electric Q8 e-tron sport utility vehicle produced there. To bolster sales, Audi plans to update models including the A7 sedan and Q3 SUV this year.
CEO Gernot Döllner said in a statement on Monday;
Customers can look forward to numerous new plug-in hybrids as well.
