German Luxury Cars Struggle: Volkswagen's Global Sales Plunge 7%

At a critical moment in the global transition to electric vehicles, the German automotive giant Volkswagen still faces severe sales challenges.

In the third quarter, Volkswagen's global sales decreased by 7%, with the most significant declines in the European and Asian markets. In particular, the electric model Taycan saw a sharp 47% drop in sales.

Porsche, a luxury brand under Volkswagen, recorded its lowest sales in the Chinese region for nearly a decade during the quarter.

Furthermore, Volkswagen's pure electric vehicles also experienced a significant decline in sales in Europe and the United States, with a 12% drop in Europe and a more than 40% decrease in the United States.

 

German luxury cars collectively face setbacks, with sluggish sales

 

Marco Schubert, Volkswagen's head of sales, stated that the particularly fierce competition in China is the main reason for the company's global sales decline.

In the luxury car segment, other European premium brands such as BMW and Mercedes-Benz are also experiencing similar sales pressures.

Yesterday, Mercedes-Benz reported that the group sold 594,600 cars and trucks in the third quarter, a year-on-year decrease of 3%; pure electric vehicle sales dropped by 31% to 46,900 units.In the third quarter, Mercedes-Benz's deliveries in China fell by 13% to 170,700 units, with a sluggish demand for expensive models such as the S-Class and Maybach sedans.

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Furthermore, the overall sales of Mercedes-Benz's high-end cars dropped by 12% this quarter. Analysts have pointed out that this signifies a setback in Mercedes-Benz's attempt to further consolidate its position as a luxury brand and serves as another warning signal for the German luxury car market:

"The market environment for electric vehicle sales remains sluggish, with intense pricing competition in key markets."

BMW Group's sales in the third quarter decreased by 13% year-on-year. The sales of BMW and Mini brands in China fell by 30% in the third quarter, marking the largest decline in over four years.

However, BMW stated that the emergency recall of 1.5 million vehicles due to brake system failures also impacted the delivery figures.