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Volkswagen Group Achieves Stable Sales And Progress In Electric Mobility Despite Market Challenges
Volkswagen Group has maintained its position in a challenging market, driven by the success of its new products. The company has made strides in design, technology, and quality, with significant advancements in software. Sales figures have remained stable globally. In Europe, Volkswagen has strengthened its lead in electric mobility, holding a 28% market share with a strong order book.
The first half of 2025 presented mixed results for Volkswagen. While product success was evident, the operating result fell by a third compared to the previous year. This decline was partly due to increased sales of lower-margin electric models and higher US import tariffs. Restructuring measures also negatively impacted results.
Volkswagen's sales revenue for the first half of 2025 reached EUR 158.4 billion, nearly matching the previous year's level. Vehicle sales saw slight growth, with financial services experiencing a notable increase in sales revenue. However, currency effects offset these gains.
Vehicle sales in the first half of 2025 slightly exceeded those in 2024, with 4.36 million units sold compared to 4.34 million previously. Growth was seen in South America (19%), Western Europe (2%), and Central and Eastern Europe (5%). However, China experienced a 3% decline, while North America saw a significant drop of 16%, mainly due to tariffs.
Western Europe's order intake rose by 19% during this period. New models across various drive types contributed to this increase, with all-electric vehicle orders growing by an impressive 62%.
Brand Group Performance
The Core Brand group achieved progress in cost efficiency with an operating margin of 4.8%. Škoda recorded its best quarterly result ever with an operating margin of 8.5%. The Progressive Brand group generated an operating result of EUR 1.1 billion but faced challenges from model changes and restructuring costs.
Porsche's sales declined by 11% to around 135,000 units, with revenue decreasing by 9% to EUR 16.1 billion. The Macan remained Porsche's best-selling model despite these declines.
Outlook for the Year
For the remainder of 2025, Volkswagen anticipates sales revenue aligning with last year's figures rather than increasing as initially expected. The operating return on sales is projected between 4% and 5%, down from earlier estimates of up to 6.5%. Investment ratios are expected to remain between 12% and 13%.
The Automotive Division's net cash flow is forecasted between EUR 1 billion and EUR 3 billion for the year, considering future investments and restructuring costs.
Challenges Ahead
The company faces uncertainties related to US import tariffs and geopolitical tensions that could impact operations further. Political instability and trade restrictions add complexity to the business environment.
Volkswagen continues its commitment to maintaining solid financing policies amidst these challenges while focusing on electric mobility and sustainability initiatives.
CARIAD's software delivery success led to a roughly 30% increase in sales revenue compared to H1 2024. Despite restructuring expenses related to transformation programmes, CARIAD's results improved by approximately EUR 0.2 billion from the previous year.
The TRATON GROUP experienced a decline in unit sales due to reduced demand in North America and Europe alongside challenging conditions in Brazil. Consequently, TRATON's sales revenue dropped by about 7%, impacting their overall performance significantly.
The Volkswagen Group remains committed to shaping future mobility through investments in electric vehicles and digitalisation efforts worldwide while navigating complex market dynamics effectively.
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