(Bloomberg) -- Tesla Inc. came awfully close to overtaking one of Germany’s most prized car brands last year.

Volkswagen AG’s Audi sold 1.89 million vehicles in 2023, narrowly beating the US manufacturer’s 1.81 million deliveries. After three years of decline, the German brand managed to stay ahead by increasing sales 17% on robust demand in China, Europe and the US.

Like most European carmakers, Audi has in recent years struggled with parts shortages and a complex shift electric cars. The premium brand last month said it’s paring back its EV rollout to avoid burdening factories and dealers amid slower growth in electric-car sales.

Read more: Audi CEO Nudges Back EV Model Rollout Amid Market Wobbles

Tesla’s meteoric rise has slowed a bit recently. Chief Executive Officer Elon Musk told analysts a year ago that the company had the potential to produce 2 million cars in 2023, but a series of price cuts failed to stoke enough demand. Tesla delivered more vehicles than expected in the fourth quarter, though not enough to stay ahead of China’s BYD Co. in global electric-car sales. 

While the Germans are making progress shifting to EVs, they’re still minnows compared to Tesla. The US carmaker sold more fully electric vehicles last year than Audi, BMW and Mercedes-Benz combined.

--With assistance from Craig Trudell.

©2024 Bloomberg L.P.