Volkswagen, sales down 7%: China effect weighs on. Porsche slump

Global sales of the Volkswagen Group fell 7.1% in the third quarter to 2.17 million (down from 2.3 million a year ago), weighed down mainly by declines in Asia (-15% in China, -23% in the rest of the continent) and Western Europe (-7%), but also by difficulties with electric vehicles. The Porsche brand suffered particularly badly, with sales in China at their lowest level in the last decade, continuing the trend of other premium European carmakers such as BMW and Mercedes. The drop was particularly sharp for Porsche's electric model Taycan, whose sales plummeted 47%. The Zuffenhausen-based manufacturer delivered 13,279 cars in China in the quarter, -19%. Porsche lost 7% across all engines and on a global scale, Audi 16%, the VW brand -6.6%. Only Skoda is positive: +6%.

Group sales of electric vehicles alone fell by a total of 9.8% in the quarter, 11.9% in Europe (-14% in the first nine months, testifying to a crisis in demand on the Old Continent) and almost 42% in the United States, where a plus sign (+6.4%) was recorded for all motorisations, as well as in South America. Paradoxically, electric cars were up 5.2% in China, but with 57,500 vehicles: too little to worry the local players, especially the giant BYD, which grew 40% overall in the same period thanks to hybrids, but still sold 443,426 battery cars (+2%). Volkswagen, which has long dominated sales of high-end petrol cars, has lost ground to local manufacturers, which have taken over with innovative and affordable models.

According to the Wolfsburg-based group the outlook looks better for the fourth quarter: 'Orders for battery electric vehicles (Bev) in Western Europe doubled by the end of September. The order book is around 170,000 vehicles and deliveries of new models such as the VW ID.7 Tourer, Audi Q6 e-tron and Porsche Macan Electric will provide further momentum in the fourth quarter'.

In the first nine months of 2024, the German group delivered 6.52 million vehicles worldwide, down 2.8% compared to the same period last year (6.72 million vehicles). Growth in North America (+7%) and South America (+15%) was offset by declines in Western Europe (-1%) and in particular, once again, in China (-10%). For electric vehicles alone, deliveries amounted to 506,500 vehicles delivered worldwide, down 4.7% from the previous year (531,500 vehicles). Far more electric vehicles were delivered in China in the first nine months of the year (148,000, +26.5%, compared to BYD's 1.2 million), while the segment declined in the US (-26%). The Volkswagen Group remains the market leader for electric cars in Europe despite lower deliveries (market share around 19%).

The share price of the German group, which has not yet finalised with the trade unions the possible closure of two or more plants in Germany, is still weak: the ordinary shares lost more than one percentage point to EUR 96.75 (-18% since the beginning of the year), at their lowest in eleven years (May 2013).