The VW brand, part of the larger Volkswagen group which includes Audi and Lamborghini among others, sold some 4.8 million vehicles worldwide last year, it said in a statement.

Deliveries rose around 20 percent in North and South America but shrunk 1.7 percent in Europe, the brand's second-largest market by volume.

In China, VW's most important market, sales plunged by 8.3 percent.

"2024 was a tough year worldwide, with a weak economy, political challenges and tough competition -- particularly in China", VW executive Martin Sander said in a statement.

In December, Volkswagen reached an agreement with unions to cut 35,000 jobs across Volkswagen's German locations by 2030.

The drastic cuts should save around four billion euros ($4.1 billion) a year in the medium term and avoid plant closures in Germany, which Volkswagen had previously warned might be required.

Other European carmakers are also struggling in the face of Chinese competition.

BMW warned investors in November that its performance for the year would fall short of expectations, citing weak demand in China.

Stellantis, whose brands include Jeep, Peugeot and Fiat, likewise said in September that Chinese competition would also hit its performance.

Chinese carmakers such as BYD and Xiamoi are able to supply electric cars at prices that European competitors struggle to match.

The Volkswagen group publishes its full financial results for 2024 on March 11.

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Volkswagen

BAYERISCHE MOTOREN WERKE AG

Stellantis

Fiat Chrysler Automobiles

BYD COMPANY