Tesla Inc. surpassed Germany’s premium car brand Audi in 2024, delivering 1.79 million vehicles compared to Audi’s 1.67 million, which marked a 12% year-over-year decline for the Volkswagen-owned company. This shift highlights Tesla’s growing dominance, despite its own struggles, including the first annual deliveries decline in over a decade.
Tesla capitalized on its rapid expansion over recent years, with the Model Y SUV ranking among the world’s best-selling cars. The company narrowly retained its lead over China’s BYD as the top seller of fully electric vehicles.
In contrast, Audi faced intensifying competition in Europe and China, compounded by weak demand for its electric models. Audi’s EV deliveries fell 8% to approximately 164,000 units, contributing to Volkswagen AG’s profit warnings in 2024.
Germany’s luxury automakers are grappling with sluggish EV sales in Europe following subsidy cuts and an uncertain recovery in China’s luxury market. Audi responded by reducing production, including plans to close its Brussels plant due to poor demand for the Q8 e-tron SUV.
To counter its sales slump, Audi is set to refresh models like the A7 sedan and Q3 SUV, with new plug-in hybrids also in the pipeline. “Customers can look forward to numerous new plug-in hybrids,” said CEO Gernot Döllner in a statement Monday.
Tesla’s agility continues to challenge traditional automakers as the EV market evolves.