The Volkswagen Group, which includes Volkswagen, Audi, Porsche, Skoda, Seat, Cupra, and more, reported 2,243,700 global vehicle sales during the second quarter of 2024, a 3.8% decline compared to Q2 2023. Also, the first half of the year was negative at 4,348,000, down 0.6%.

The company’s all-electric vehicle sales recently stalled, which is a worrying sign. In Q2, Volkswagen Group’s EV sales amounted to about 180,800, up 0.1% year-over-year. That’s about 8.1% of the total volume, compared to 7.7% a year earlier, but the growth is solely due to the total sales decline.

Volkswagen Group reports challenges

During the first half of the year, Volkswagen Group’s sales decreased year-over-year, both in terms of total volume and EVs. Moreover, the company lowered its profit forecast for 2024.

Let’s recall that the relatively weak Q2 follows the decline in EV sales in Q1. The company mentions an increase in EV orders in Western Europe in H1 to around 170,000 units, up 124% year-over-year, and upcoming new model launches, including the Volkswagen ID.7 Tourer, Audi Q6 e-tron, and Porsche Macan Electric. However, the situation remains challenging.

Volkswagen Group BEV sales in Q2’2024 (YOY change):

• Total: 180,800 (up 0.1%) and 8.1% share

In the first half of the year, Volkswagen Group sold about 317,200 all-electric vehicles. That’s 1.4% less than a year ago and 7.3% of the total vehicle sales.

At the same time, the group sold 136,000 plug-in hybrid vehicles, 17% more than in H1 2023. New PHEV models with more all-electric range are expected to boost sales in the second half of the year.

Volkswagen Group BEV sales in Q1-Q2’2024 (YOY change):

• Total: 317,200 (down 1.4%) and 7.3% share

For reference, in 2023, the group sold more than 771,000 all-electric vehicles worldwide—35 % more than in 2022—achieving a new record share of 8.3%.

We are now wondering what the Volkswagen Group can do next. Flat EV sales and declining total results do not look well. It’s worth noting that Volkswagen at least delayed the ID.7 launch in the U.S., Audi Q8 e-tron production is expected to end, while the tariffs for China-made EVs in Europe will impact the plan to import the Cupra Tavascan (another cousin of the ID.4) from China.

Europe remains Volkswagen Group’s largest EV market, accounting for more than 60% of all sales, but in Q2, the volume decreased by almost 8% year over year.

On the contrary, sales increased by 21% in China to 49,600. In the U.S., sales decreased by nearly 15% to 12,000.

BEV sales in Q2’2024 (YOY change):

• Europe: 109,700 (down 7.7%) and 60.7% share
• U.S.: 12,000 (down 14.5%)
• China: 49,600 (up 21%)
• Rest of the world: 9,500 (up 41.2%)
• Total: 180,800 (up 0.1%)

Regarding all-electric vehicle sales, the Volkswagen brand was the largest one with 100,300 units sold in Q2, but only a slight sales increase of nearly 6%. Porsche and Skoda were down by 48% and 18% respectively, while Audi noted a 0.1% decline.

Sales in Q2’2024 (YOY change):

• Volkswagen (cars): 100,300 (up 6%)
• Audi: 41,000 (down 0.1%)
• Skoda: 15,500 (down 18%)
• Volkswagen Commercial Vehicles: 7,600 (up 11%)
• Seat/Cupra: 11,300 (up 17%)
• Porsche: *4,602 (down 48%)
• other (MAN, Volkswagen Truck & Bus, Scania, Navistar): 290 (down about 27%)
• Total: 180,800 (up 0.1%)
  * data from Porsche; other results rounded to 100

In terms of models, without any surprise, the Volkswagen ID.4 (counted by the manufacturer together with the ID.5 coupe version) and the Volkswagen ID.3 continued to be the best-selling models within the group.

Select EV model sales (for which data are available) in Q1-Q2’2024:

• Volkswagen ID.4/ID.5 – 86,800
• Volkswagen ID.3 – 66,200
• Audi Q4 e-tron (incl. Sportback) – 52,100
• Skoda Enyaq iV (incl. Coupé) – 29,400
• Cupra Born – 18,200
• Audi Q8 e-tron (incl. Sportback) – 17,900
• Volkswagen ID. Buzz (incl. Cargo) – 14,600
• Porsche Taycan (all versions) – *8,838
  other models – about 23,162
• Total: 317,200 (down 1.4%)
  * data from Porsche; other results rounded to 100

Some of the models are very similar and offered by different brands. We can distinguish two main groups, which have a dominant share in the overall result when counted together:

• MEB-based hatchbacks: 84,400 (27% of all BEVs)
  Volkswagen ID.3 and Cupra Born
• MEB-based crossover/SUVs: 168,300 (53% of all BEVs)
  Volkswagen ID.4/ID.5, Audi Q4 e-tron (incl. Sportback) and Skoda Enyaq iV (incl. Coupé)
• all other models combined: 64,500 (20% of all BEVs)

In other words, just 20% of the group’s EVs are not clones of the ID.3 or ID.4.

In 2024, the Volkswagen Group intends to launch several new all-electric models, including the Volkswagen ID.7 Tourer (an estate version of the ID.7) and the Volkswagen ID. Buzz with a long wheelbase (LWB), Cupra Tavascan (another cousin of the ID.4), and the two first models based on the all-new Premium Platform Electric (PPE) system: the Audi Q6 e-tron and the Porsche e-Macan.