The Volkswagen Group has released its half-year results for 2025, showing slight growth in vehicle sales and a significant increase in sales revenue within Financial Services. However, the operating result saw a decline primarily due to high costs from increased U.S. import tariffs amounting to EUR 1.3 billion, restructuring provisions at Audi, Volkswagen Passenger Cars, and Cariad totaling EUR 0.7 billion, and expenses related to CO₂ regulation.
“The operating margin was 5.6% before increased US tariffs and restructuring,” stated the company. Growth was observed in South America (+19%), Western Europe (+2%), and Central and Eastern Europe (+5%), which compensated for declines in China (-3%) and North America (-16%).
The Group noted an increase in incoming orders in Western Europe driven by new models like the VW ID.7 Tourer, CUPRA Terramar, Škoda Elroq, Audi Q6e-tron, and Porsche 911. “Order intake for all-electric vehicles was particularly strong,” with a reported increase of 62%.
Volkswagen’s financial outlook anticipates sales revenue to align with last year’s figures, projecting an operating return on sales between 4.0% and 5.0%. The Automotive Division expects an investment ratio between 12% and 13%, with net cash flow estimated between EUR 1 billion and EUR 3 billion.
Challenges anticipated include political uncertainty, expanding trade restrictions, geopolitical tensions, competition intensity, volatile markets for commodities and energy, foreign exchange fluctuations, and stricter emissions-related requirements.
Brand group Core showed progress in cost efficiency with a recorded operating margin of 4.8%. Škoda achieved an operating margin of 8.5%, marking its best quarterly result historically with around EUR 740 million.
“Brand group Progressive generated an operating result of EUR 1.1 billion,” influenced by model changes as well as restructuring expenses.
Porsche experienced a decline in sales by 11% to approximately 135,000 units; however, the Macan remained the best-selling model despite sales revenue decreasing by 9%.
TRATON GROUP faced declining unit sales due to weak demand across regions including North America and Brazil leading to a decrease in sales revenue by about 7%.
CARIAD saw a rise in sales revenue by approximately 30% compared to H1 of the previous year owing to successful software delivery but maintained an operating loss of around EUR -1.2 billion.
The Volkswagen Group maintains its commitment to solid financing policies amidst current challenges while pursuing strategic objectives aimed at future investments alongside necessary restructuring measures.
