Tesla Inc. has outpaced Audi in global car sales, marking the first time the American electric vehicle manufacturer has surpassed the German luxury brand. In 2024, Tesla sold 1.79 million vehicles, edging out Audi’s 1.67 million, despite both companies facing their own set of challenges.
Audi, a subsidiary of Volkswagen AG, saw a notable 12% decline in sales from the previous year, attributing much of this downturn to sluggish demand in key markets such as Europe and China. The decline in electric vehicle (EV) sales was particularly pronounced, with an 8% drop to approximately 164,000 units. This setback was exacerbated by reduced subsidies for EVs across several European countries, which have historically buoyed sales figures.
The German automaker’s struggles are emblematic of broader issues facing the country’s luxury carmakers, including BMW AG and Mercedes-Benz Group AG, both of whom issued profit warnings last year. These companies are grappling with fluctuating demand as local Chinese manufacturers encroach on the high-end market and economic recoveries remain uncertain.
While Tesla celebrated surpassing Audi in sales, the year was not without its hurdles. The company recorded its first annual decline in vehicle deliveries in over a decade, partly due to intensifying competition from China’s BYD Co., which remains a formidable adversary in the global EV market. Despite these setbacks, Tesla maintained its position as the leading seller of fully electric vehicles worldwide in 2024.
In response to shifting market dynamics, manufacturers have begun adjusting their production strategies. Audi has announced plans to close a production facility in Brussels due to poor demand for the electric Q8 e-tron SUV. Volkswagen, Audi’s parent company, is similarly reducing capacity at its main brand to align with slowing sales.
Industry analysts suggest that these moves are part of a broader trend of recalibration within the automotive sector, as companies navigate the complexities of transitioning to electric mobility while managing traditional combustion engine portfolios.
Auto industry expert Ferdinand Dudenhöffer, director of the Center for Automotive Research at the University of Duisburg-Essen, commented on the evolving landscape: “The global automotive market is undergoing a transformative phase. Traditional luxury brands must innovate and adapt to the electric revolution to remain competitive.”
Looking ahead, both Tesla and Audi, along with their competitors, face the imperative of accelerating their EV offerings to capture emerging market opportunities and meet growing consumer expectations for sustainable and technologically advanced vehicles.
As the automotive industry continues to evolve, consumers and specialists alike will be closely monitoring how these iconic brands adapt and thrive in an increasingly competitive global market.
