Volkswagen Group has released its financial numbers for the first quarter of 2024, revealing a slowdown in sales and a decrease in profits, in line with trends seen among other EU-based automakers. Despite these challenges, the Group remains optimistic about achieving its financial targets for the year.
The Q1 report indicates a 20% decrease in profits for Volkswagen Group. This comes as the company experienced a mixed performance in vehicle deliveries. Overall deliveries were up 3% year-over-year, but battery electric vehicle (BEV) sales saw a decline. While EV sales surged in China by 91%, they fell in Europe by 24% and in the US by 16%. The top-selling models for Volkswagen in Q1 were the ID.4/ID.5 (34,600 units), ID.3 (26,100), Audi Q4 e-tron (22,800), Skoda Enyaq (14,000), Audi Q8 e-tron (9,600), and VW ID.Buzz (7,000).
Despite these challenges, Volkswagen Group remains focused on its electric vehicle lineup. The company is set to launch several new BEV models, including a revamped Taycan from Porsche, which saw a 54% decline in deliveries in Q1 2024. Volkswagen hopes that these new models will help drive a rebound in 2024.
Volkswagen Group CFO and COO Arno Antlitz acknowledged the slow start to the year but expressed confidence in the company’s ability to meet its financial targets. He highlighted a strong March, a solid order bank, and improving order intake as positive indicators for the second quarter. Antlitz also pointed to the launch of more than 30 new models across all brands and the gradual effects of efficiency programs as factors that will contribute to future growth.
In terms of sales revenue, Volkswagen Group reported 75.5 billion euros, slightly down from 76.2 billion in Q1 2023. The operating results were EUR 4.6 billion, down 20% compared to a year ago, with an operating margin of 6.1%. The company attributed this decline to lower sales volumes, an unfavorable country, brand, and model mix, as well as an increase in fixed costs.
Despite the challenges, Volkswagen Group anticipates a sales revenue increase of up to 5% and an operating margin between 7 and 7.5% for the full year 2024. The company remains committed to its transformation strategy, including investments in the battery business, and aims to maintain solid financing and liquidity policies despite the challenging economic environment.