Car sales in the first half of the year - German car manufacturers weaken in sales
It's running tough for the German automobile industry. All three major companies have announced sales figures for the first half of the year - none of them are in the plus on a group level. BMW reported a decrease of 0.1% to 1,21 million cars sold and VW a decrease of 0.6% to 4.35 million. Mercedes-Benz suffered a loss of 6% to 1.17 million.
At Volkswagen, it's mainly the core brand and Audi that are pulling the numbers down. The Ingolstadt daughter sold only 833,000 cars in the first half, 8.2% less than the previous year. The core brand VW, which accounts for more than half of the entire group sales, managed to almost hold its sales in the first half, with a decrease of only 0.2% to 2.22 million cars. However, the downward spiral accelerated significantly in the months of April to June, with a decrease of 5.2% in this period. The daughters Skoda and Seat/Cupra were able to make up for it.
China's business is struggling
The business is particularly weak in China, where the VW Group sells about a third of all cars. In the six months, only about 1.35 million cars were sold there, 7.4% less than the previous year. There was also a setback in the sales of electric cars. The group delivered a total of 317,200 electric models worldwide in the first half, 4,400 fewer than in the same period in 2023. The cause was the weak demand in Europe and the USA, where 15% fewer electric cars were delivered.
Audi was able to slightly increase its electric car sales from 75,600 to 76,700 vehicles. However, deliveries of the top model Q8 e-tron fell from 19,500 to 17,900. Due to the weak demand for the electric model Q8 e-tron, Audi is now considering prematurely stopping production of the model in Brussels. This would put the entire site with around 3,000 employees in jeopardy.
The VW Group remains optimistic for the rest of the year. "We are calculating, based on the ramp-up of numerous important models in the second half of the year, that we will continue to expect a slight increase in worldwide deliveries compared to the previous year," said Audi Sales Chief Hildegard Wortmann, who is also responsible for the department in the overall group.
BMW is helped by pure electrics - but not as much anymore
The daughters Mini and Rolls-Royce put pressure on BMW's figures. Their sales decreased by 18.7% to 114,000 cars for Mini and by 11.4% to 2,819 for Rolls-Royce. At BMW, the core brand managed to sell 1.1 million cars and grow by 2.3% despite this.
Unlike its premium segment rivals, Audi and Mercedes, electromobility remains a growth driver for BMW. Deliveries of pure electric vehicles at BMW increased by around a quarter to 190,600. However, the percentage growth has also significantly decreased here: BMW still achieved a plus of around three quarters in electric vehicles in the full year 2023.
Sales Board Member Jochen Goller assessed the development "in a challenging market environment" positively: "We have managed to grow by over 100% in fully electric vehicles and models from the upper premium segment in the first six months of the year."
Mercedes suffered a decline in electric sales figures
At Mercedes, nearly 960,000 deliveries were recorded in the Mercedes-Benz Cars division - a decrease of 6%. The Vans division reported a loss of 4% on 209,000 units. The electrification proved to be a brake for Stuttgart: The sales of fully electric vehicles dropped by 16% at the group level to 101,600, with a 17% decrease in the Cars division to 93,400. The high-demand for electric vehicles is slowing down in key markets, the company stated.
Model changes and supply bottlenecks influenced the sales in the first half of the year, Mercedes stated. In the top product segment, which includes models such as the S-Class, sales dropped by 22%. This could also be attributed to a subdued market environment in Asia. In the important market China, sales decreased by 9%.
The automotive industry in Baden-Württemberg, home to Mercedes-Benz, is facing challenges. Germany, as a whole, is experiencing a tough run for its auto manufacturers, with all major companies reporting decreases in sales figures for the first half of the year. Mercedes-Benz, a prominent car company based in Munich, saw a significant loss of 6% in sales, totaling 1.17 million cars.
Volkswagen Group, headquartered in Wolfsburg, Lower Saxony, also reported a decrease in sales, with VW and Audi contributing to the unfavorable figures. Audi, specifically, sold 833,000 cars in the first half, a 8.2% decrease from the previous year. The core brand VW, which makes up the majority of the group's sales, managed to almost maintain its figures, with a slight decrease of 0.2%.
However, the downturn accelerated in the months of April to June, with a decrease of 5.2% in this period. The daughters Skoda and Seat/Cupra were able to offset these losses. Despite the challenges, the VW Group remains optimistic about the rest of the year, anticipating a slight increase in deliveries.
China, a key market for the VW Group, has seen weak demand, with only 1.35 million cars sold between January and June, a decrease of 7.4% compared to the previous year. The group also reported a setback in electric car sales, delivering 317,200 electric models worldwide, a decrease of 4,400 units from the same period in 2023.
Bavaria's BMW, another prominent car company in Germany, saw a decrease of 0.1% in sales, selling 1,21 million cars, but managed to grow in the electric vehicle segment by around a quarter, with 190,600 deliveries. However, the growth in this segment has also significantly decreased.
Audi, another German car company, reported a decrease in sales, delivering 76,700 electric vehicles, an increase of just 1,100 units compared to the previous year. The decline in sales of the top model Q8 e-tron forced Audi to consider prematurely stopping production of the model in Brussels, threatening the employment of around 3,000 employees.
The automotive and electrical industries in Germany, including companies like Mercedes, BMW, Audi, Volkswagen, Škoda, and Seat/Cupra, are facing a challenging market environment. The sales figures for the first half of the year reflect this, with all major companies reporting decreases in sales. The industry is looking to the second half of the year with optimism, hoping to see a slight increase in deliveries.
