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The Volkswagen Group reported operating profit (5.6 billion euros) worse than market estimates in the second quarter due to the negative effects of commodity hedging and intensifying competition in China, its most important market. Revenue increased by 15.2% to 80.1 billion euros, thanks to an increase in vehicle deliveries worldwide except China. Europe’s leading automaker confirmed its financial outlook for the year, but slightly lowered its delivery estimates.
Driving sales in Europe and North America
In the first half, the group declared an operating profit of 11.3 billion euros (-11.5%), with profitability (operating Ros) at 7.3%, worsening compared to 9.7% in the same period of 2022. The revenue growth was 18% to 156 billion euros, “driven by significantly higher vehicle sales in Europe and North America and continued favorable mix and pricing.”
Volkswagen ID2.all, this is how the compact electric is live
First-half deliveries totaled 4.4 million vehicles, up 13% year-on-year. Deliveries of fully electric vehicles (BEVs) increased by around 50% in the first half of 2023, representing a 7.4% share of total deliveries (5.6% in 2022) and allowing to maintain the leadership of the European market in the Bev segment.
At what stage is Vw with the electrics
“As part of a more difficult market environment, the Volkswagen Group aims to achieve an electric vehicle share of 8 to 10 percent of total deliveries in the 2023 financial year,” the statement reads. The total number of electric cars sold in the first six months of the year is 322 thousand, of which 200 thousand in Europe. This year, rivals Tesla and BYD are aiming for 1.8 million and 1.5 million pure electric vehicles, respectively.
The Group’s electrification strategy continued to accelerate, including 18% year-on-year growth in China in the second quarter, demonstrating a positive trend. In a difficult market environment, Volkswagen was able to increase its market share particularly in Europe.” In China, BYD sold 595,300 hybrid and plug-in electric (NEV) models in the second quarter, increasing its overall market share to 11.2%, according to data from the China Automotive Technology and Research Center. Volkswagen remains the second best-selling brand in China (544,000, of which only 23,433 are fully electric models), with a very different position from when it controlled about 15 percent. In the first quarter it was under 20,000 units and was at the bottom of the China Passenger Car Association ranking of the top 15 manufacturers, almost all local (except Tesla). Three weeks ago it launched an offer for the ID.3 at 15,000 euros, a compact car that costs around 40,000 euros in Europe.