Volkswagen's Q1 Financial Highlights

In the first quarter of 2025, Volkswagen Group announced a notable increase in revenue, reaching €77.6 billion, which marks a 2.8% rise compared to the previous year. This growth comes despite a challenging global economic landscape.

Vehicle Sales and Production Insights

The company saw a modest increase in vehicle sales, up by 0.9% year-on-year to 2.1 million units, with customer deliveries growing by 1.4% to 2.13 million. However, production experienced a downturn, decreasing by 3.2% to 2.19 million units.

Operating Profit Challenges

Operating profit faced a significant decline, dropping 36.9% to €2.87 billion. This was attributed to special effects amounting to €1.1 billion, a slightly negative price/mix, and higher fixed costs, leading to an operating margin reduction to 3.7% from 6% the previous year.

Future Outlook and Electric Vehicle Growth

Looking ahead, Volkswagen anticipates full-year sales growth of up to 5%, though it cautions that results may trend towards the lower end of forecasts due to ongoing global economic and geopolitical pressures. Arno Antlitz, CFO & COO of Volkswagen Group, highlighted the mixed start to the fiscal year and noted a significant milestone: every fifth car sold in Western Europe is now fully electric, with first-quarter unit sales more than doubling.