On January 13, 2025, Tesla outperformed Audi in global sales, marking a significant shift in the premium automotive market. Tesla delivered 1.79 million vehicles in 2024, while Volkswagen AG's Audi sold 1.67 million, a 12% decline from the previous year.
The decrease in Audi's sales is attributed to intensified competition in Europe and China, coupled with weak demand for its electric models. Reports indicate that German automakers are grappling with sluggish luxury car demand in China, where recovery remains uncertain, and local manufacturers are gaining ground.
In Europe, electric vehicle sales have fallen short of expectations as several countries have halted subsidies for electric mobility. This situation has prompted restructuring efforts from major brands, including Volkswagen, Mercedes-Benz, and BMW.
Audi's sales declined in key markets such as Germany, China, and North America, with fully electric model deliveries dropping 8% to approximately 164,000. In response to slowing sales, manufacturers have begun production cuts, with Volkswagen reducing capacity for its namesake brand. Audi plans to close a plant in Brussels due to low demand for the electric Q8 e-tron.
Despite its success, Tesla also faced challenges in 2024, recording its first annual decline in deliveries in over a decade, narrowly maintaining its lead over China's BYD as the world's top fully electric vehicle manufacturer.