By Dominic Chopping

Volkswagen vehicle deliveries rose in the first quarter after gains in North and South America as well as in Europe compensated for a steep decline in China.

The German automaker has been hit by intense competition in China that has seen rivals cut prices to win customers in its largest market. Volkswagen has avoided engaging in the price war, preferring to stick to its pricing model and prioritizing profitability over higher volumes in the country.

The company, which houses a stable of brands that includes VW, Audi and Porsche, said its group vehicle deliveries rose 1.4% on year to 2.13 million in the first quarter. Deliveries in China were down 7.1% to 644,100 vehicles.

"Against the background of a highly competitive market, which continues to be characterized by a fierce price competition among over 100 brands, this result was in line with our expectation and has met our target," the company said.

Volkswagen expects the Chinese market will continue to be challenging this year, but said its strategy in the country is starting to deliver results ahead of a new range of intelligent connected vehicles that will begin to enter the market.

Globally, deliveries of the group's battery-electric vehicles rose around 59% on year to 216,800 vehicles. The company said it remains the clear market leader in Europe with a 26% market share. Its global battery-electric vehicle market share rose to 10% from 6%, after strong growth in Europe and the U.S., despite declining deliveries in China.

Next-generation plug-in hybrid cars with extended purely-electric ranges are experiencing increasing demand, it added.

"In the coming months, we expect additional tailwind from numerous newly launched models," said Marco Schubert, member of the group's extended executive committee for sales.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

April 09, 2025 06:40 ET (10:40 GMT)

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