Tesla (TSLA, Financial) surpassed Audi in sales last year, delivering 1.79 million vehicles, despite facing increased competition in Europe and China and a weakening demand for electric vehicles. Audi, a subsidiary of Volkswagen, experienced a 12% decline in sales, totaling 1.67 million units in 2024, falling behind Tesla in the luxury car segment.
German automakers are struggling with lukewarm luxury car demand. In China, local manufacturers are advancing into the high-end market, while in Europe, electric vehicle sales have fallen short of expectations following subsidy cuts in several countries. These challenges have prompted companies like Volkswagen, Mercedes-Benz, and BMW to issue profit warnings last year.
Audi reported declining sales in key markets such as Germany, China, and North America. The delivery of fully electric models dropped by 8% to approximately 164,000 units. In response to slowing sales, automakers like Volkswagen have begun reducing production capacity. Audi plans to close a plant in Brussels due to poor demand for its Q8 e-tron electric SUV.
Despite Tesla's success, 2024 presents challenges for the company. Tesla has reported its first annual delivery decline in over a decade, and its lead over BYD in the electric vehicle market is narrowing. Nevertheless, Tesla remains the world's best-selling all-electric car manufacturer.
