German legacy automaker Volkswagen proudly announced that its electric vehicles enjoyed a more than twofold increase in orders in Europe in Q1 2024.
Volkswagen also declared plans to deliver an all-electric vehicle lineup to achieve a sustainable future in the transportation sector.
EV orders surge
Volkswagen indicated in its shareholder deck that its electric vehicle orders more than doubled in the European market in the first quarter of the year compared to Q1 2023.
This remarkable progress demonstrates the increasing interest of local customers in the brand’s models. However, VW omitted from disclosing the specific order figures.
Notably, the surge in orders comes amid industrywide concerns over waning electric vehicle sales in the region. Electric automakers have struggled with narrow profit margins and an intensifying price war.
Despite the slower-than-expected uptake, Europe’s largest automaker remained committed to an all-electric future.
“The future will be electric, this is our conviction.”
Chief Financial Officer Arno Antlitz said during the Q1 2024 Earnings Call
Delivery drops amid slower-than-expected uptake
Despite the notable order growth in the first quarter, VW still reported a decline in its European electric vehicle deliveries.
According to the report, EV deliveries dropped 16% year-on-year in its home market in Q1 2024. The German automaker cited “supply bottlenecks” for this delivery decline.
“There is a time gap between incoming orders and the delivery to the customer. The supply bottlenecks mentioned impacted the delivery performance in Q1.”
VW spokesperson (via CNN Business)
CFO Arno admitted that the current pace of electric vehicle sales growth in Europe and the US had been slower than Volkswagen expected.
“[EV penetration] will increase quarter-by-quarter, year-over-year, but not as fast as we have expected.”
Chief Financial Officer Arno Antlitz said during the Q1 2024 Earnings Call
VW’s business in China
Volkswagen’s electric vehicle deliveries in China reportedly doubled to 41,033 units in Q1 2024.
It plans to launch four new offerings in the country over the next 3 years, including two electric vehicles. It is indeed a remarkable move, considering the intense competition in the Chinese market.
According to CFO Arno, China is among the most challenging markets due to its “very challenging pricing environment.”
Volkswagen’s order growth in China was insufficient to counter the reported 20% decline in profits to $4.9 billion in Q1 2024. Nonetheless, the VW executive remained optimistic that the company will hit its financial targets for the year in the coming quarters.
