Tesla Steals Luxury Crown from Audi Despite Delivery Dip
Tesla Inc. has surpassed Audi, a cornerstone of German luxury auto manufacturing, to claim the top spot in global luxury vehicle sales in 2024, Bloomberg reports.
This victory comes despite Tesla experiencing its first annual delivery decline in over a decade, underscoring the intense competition and shifting dynamics within the global automotive market.
Audi, owned by Volkswagen AG, reported a 12% drop in sales, delivering 1.67 million vehicles in 2024, down from the previous year. The brand has struggled with increased competition in key markets like Europe and China, coupled with weaker-than-anticipated demand for its electric vehicles (EVs). In contrast, Tesla delivered 1.79 million vehicles, allowing it to claim the luxury sales crown.
The German automotive giants, including Audi, are facing significant headwinds. Demand for high-end vehicles in China, a crucial market, remains sluggish with ongoing economic uncertainty and the rise of increasingly sophisticated local manufacturers. In Europe, EV sales are failing to meet expectations following government subsidy cuts. These challenges have triggered a cascade of profit warnings from major players, including Volkswagen, Mercedes-Benz, and BMW.
Audi’s sales suffered across various regions, with declines reported in Germany, China, and North America. The company’s fully electric vehicle deliveries also dropped 8% to approximately 164,000 units. In response to the cooling sales, manufacturers have begun adjusting production levels. Volkswagen has already reduced capacity for its core brand, and Audi is planning to shutter a production facility in Brussels due to poor sales of its electric Q8 e-tron SUV.
While Tesla emerged victorious in the luxury segment, the company also grappled with its own challenges. The electric car pioneer posted its first annual deliveries decline in over a decade and only narrowly maintained its position as the world’s leading seller of fully electric cars against stiff competition from China’s BYD Co.
