Sales in Europe and North America will boost VW’s operating profit in 2023

The group said this result was due to “increased volumes in Europe and North America”, with sales increasing by around 15% year-on-year to reach up to 322.3 billion euros.

Volkswagen delivered a total of approximately 9.2 million cars to customers in 2023, an increase of 12%.

The auto giant’s sales rose 20% in Europe and 18% in North America.

In China, Volkswagen’s single largest market, the group recorded a 2% increase in deliveries “despite a difficult market”.

Volkswagen has fallen behind its domestic competitors and lost its top-selling car brand position to BYD.

The success of Chinese rivals in making electric vehicles has similarly highlighted the challenges Volkswagen faces in shifting production away from traditional internal combustion engines.

Volkswagen CEO Oliver Blume said in a statement that 2023 was an “important year” in guiding the group’s new strategy.

Blume last year identified China and the United States as key growth markets for Volkswagen, with the aim of gradually increasing profit margins.

Chief Financial Officer Arno Antlitz said in a statement that the 2023 figures show that Volkswagen has achieved “solidity”.

“Our flexibility is our strength. We will continue to invest in the electrification and digitalization of our product range, while maintaining the competitiveness of our internal combustion engine vehicles during the transition period.” he said.

Volkswagen sold 771,000 battery-powered cars in 2023, an increase of 35% from the previous year, but still only 8.3% of the group’s total sales.

Looking to the future, the German car giant expects revenue to grow by up to 5% in 2024.

The group said a weak global economy, increasing competition and unstable raw material prices, and “tightening emissions regulations” were among the headwinds facing Volkswagen in the year ahead. .

sea/hmn/rl