Volkswagen Group: Electric cars, yes, but they need flexibility

The future of mobility is electric, but it has to be acknowledged that in some parts of the world the growth of e-mobility "is slower than expected". This is why the Volkswagen Group's strategy is characterised by flexibility. This is stated in the press release accompanying the financial results for 2023.

The German group will therefore continue to invest in the development of combustion engines (which it promises will be "highly competitive and efficient"), as well as in plug-in hybrid solutions.

In 2023, all brands contributed an operating profit of €22.6 billion. Deliveries rose by 12% to 9.24 million vehicles, with all regions contributing to growth, resulting in sales of €322.3 billion.

At the same time, the share of BEVs reached 8.3% per year, thanks to the delivery of 771,100 vehicles (+35% compared with 2022).

Audi, PPE electric platform

Investment in platforms and batteries

Investment in the 2025-2029 five-year plan will be limited to €170 billion, as efforts will be made to exploit synergies within the Group as far as possible. The top priorities are the development of new products, the strengthening of regions, the battery sector, platforms for 100% electric vehicles and, as planned, the development of models with "modern and increasingly hybrid" combustion engines. According to forecasts, investment will peak in 2024 and approach the target level of 11% of sales in 2027.

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Returning to the results achieved in 2023, the operating return on sales for the core brands group (Volkswagen, Volkswagen Commercial Vehicles, Skoda, Seat/Cupra) rose to 5.3 per cent (3.6 per cent), mainly as a result of the strong increase in sales (+21 per cent, to 137.8 billion euros).

Sales for the Progressive Brands Group (Audi, Lamborghini, Bentley, Ducati) rose to €69.9 billion (+13 per cent), but operating profit fell to €6.3 billion. Sales at the luxury sports brand group (Porsche) rose to €37.3 billion (€34.6 billion), while operating return on sales remained at the previous year's level of 18.6%.

2024 is the year of world premieres

With more than 30 new products, this is an important year for the Volkswagen Group. The Golf, Tiguan, Passat, Octavia and Superb ranges will be renewed, in many cases with hybrid solutions, then there will be electric innovations based on the PPE platform (think Porsche Macan Electric and Audi Q6 e-tron) and based on MEB (Volkswagen ID.7 and ID.7 Tourer, Cupra Tavascan and Volkswagen ID. Buzz long wheelbase).