Volkswagen sales fall 2.3% amid cost pressures

Volkswagen reported on Tuesday a 2.3 per cent drop in its sales to just over nine million vehicles for 2024 as it faces challenges in reducing costs domestically and competing in a price war in China, its biggest market.

Lower sales were reported in Germany of 2.2 per cent and in China of -10 per cent citing a “fierce price war.” However, battery-electric sales in China saw an 8 per cent increase, contrasting with a 3.4 per cent global drop.

In September, Volkswagen lowered its 2024 sales forecast to nine million due to challenges at its namesake brand. The brand initiated cost-cutting measures to increase profits in the face of growing competition and declining demand.

Attribution: Reuters

Subediting: Y.Yasser