The year 2024 proved challenging for many automakers, but Tesla emerged as a standout performer, delivering 1.79 million vehicles and surpassing Audi for the first time. Audi’s total deliveries reached 1.67 million, marking a significant milestone for Tesla despite a slight dip from its 2023 sales of 1.81 million vehicles.
In contrast, Audi faced a tougher year, experiencing a 12% decline in sales compared to 2023. The German brand grappled with strong international competition, particularly from China, and weak demand for electric vehicles across Europe.
The unstoppable Tesla
Tesla’s success in 2024 can be attributed to its rapid expansion and focused strategy, which revolves around a limited number of highly successful models. The Tesla Model Y, the best-selling vehicle globally, played a pivotal role in the company’s achievements. In a year when traditional brands faced setbacks, Tesla capitalized on its advantageous position in key markets.
However, the American automaker did face challenges. Its 2024 deliveries marked the first year-over-year decline in over a decade. Additionally, Tesla’s competition with China’s EV giant BYD intensified, with Tesla maintaining only a narrow lead.
Audi follows Volkswagen’s decline
For Audi, 2024 highlighted the struggles of the luxury automotive sector, especially in China, where the market’s anticipated recovery failed to materialize. In Europe, disappointing EV sales were compounded by reduced government incentives in several countries.
These challenges led Audi to scale back production, including capacity cuts at some facilities. For example, the Brussels plant faces potential closure due to weak demand for the Q8 e-tron, a premium electric SUV.
In response to these hurdles, Audi is focusing on a new product lineup, including the A6 e-tron and Q6 e-tron, aiming to attract customers with modern designs and advanced technology.
Audi’s difficulties reflect a broader trend within the German luxury car market. Brands like Volkswagen, BMW, and Mercedes-Benz also issued profit warnings in 2024, as demand for luxury vehicles softened.
In China, local manufacturers have made significant inroads into the premium segment, intensifying pressure on European automakers. Meanwhile, in Europe, the reduction of EV subsidies has contracted the market, prompting many companies to downscale production.
