Volkswagen’s sales at home and in China have fallen in a difficult year

BERLIN (Reuters) – Volkswagen sales in 2018 Sales will fall 2.3% to more than nine million vehicles by 2024, the German automaker reported on Tuesday, as it struggles to cut costs at home and fight a price war in China, its biggest market.

The company’s sales in Germany fell 2.2 percent, while those in China fell 10 percent, citing a “severe price war.”

Still, battery-electric sales fared better in China, rising 8% compared to a 3.4% decline globally.

Volkswagen in September raised its 2024 sales forecast to about 9 million units because of challenges to its brand, which has launched a cost-cutting initiative to boost profits amid increased competition and falling demand.

Sales data from Germany’s top automakers, including Mercedes-Benz, BMW and Porsche, for 2016. It showed that affluent consumers took a hit at home and in China in 2024, holding back purchases amid uncertain economies and slower-than-expected electric vehicle sales.

The Skoda and SEAT/CUPRA brands outperformed Volkswagen’s passenger cars, with sales growth of around 7% compared to a 1.4% decline in the name brand.

Volkswagen is launching another 30 models in the group this year and said order intake in Western Europe was up 88% year-on-year, led by new models such as the VW ID.7 Tourer, Audi Q6 e-tron and Porsche. Makan Electric.

(Reporting by Victoria Waldersee. Editing by Matthias Williams and Mark Potter)