On July 31, Volkswagen Group announced its financial results for the first half of fiscal year 2025. The report shows that the group’s revenue for the first half of 2025 was €158.4 billion, a 0.3% year-on-year decrease. Operating profit was €6.7 billion, a 32.8% decline compared to the same period last year. Net profit after tax was €4.477 billion, a 38.36% year-on-year decrease.
Of particular concern is Volkswagen Group’s profit performance, with operating profit down 33% and net profit after tax down 38%. The significant decline is attributed to several deep-rooted factors. According to the report, the main reasons for the decline in operating profit are the U.S. tariff hike on imports, which led to a €1.3 billion loss for the company, restructuring provisions of €700 million for Audi, Volkswagen Passenger Cars, and its software division Cariad, as well as costs related to CO2 emissions regulations. Additionally, factors such as the increased share of pure electric vehicles, pricing, and exchange rates negatively impacted the profitability of Volkswagen. If excluding the tariff and restructuring factors, the operating return on sales for the first half of the year would be 5.6%.
In terms of sales, Volkswagen delivered 4.405 million vehicles globally in the first half of 2025, a 1.3% year-on-year increase compared to 4.348 million units in the same period last year. Of these, 465,000 were pure electric vehicles, up 46.7% year-on-year, accounting for 10.6% of total deliveries. By brand, Volkswagen Passenger Cars sold 2.32 million units, a 4.5% year-on-year increase; Škoda sold 509,000 units, a 13.6% increase; Audi sold 780,000 units, a 5.9% year-on-year decrease; Lamborghini sold 5,681 units, a 2.2% increase; Bentley sold 4,876 units, an 11% decline; and Porsche sold 146,000 units, a 6.1% year-on-year decrease.
By market, Volkswagen delivered 4.405 million vehicles globally in the first half of 2025, a 1.3% year-on-year increase compared to 4.348 million units in the same period last year. Sales in the European market were 1.6985 million units, up 1.0% year-on-year; North America reached 425,800 units, a 6.9% decrease; South America delivered 267,300 units, a 21.1% increase; and the Asia-Pacific region saw 1.4668 million units, a 1.2% decrease, with China sales declining by 2.3% to 1.3132 million units.
The Chinese market has always been an important part of Volkswagen Group’s global strategy. In the first half of 2025, Volkswagen Group delivered 1.3132 million vehicles in China, a 2.3% decline year-on-year. The Chinese automotive market is highly competitive, with the rise of domestic brands and the rapid development of new energy vehicles, constantly shifting the market landscape. Volkswagen faces numerous challenges.
Volkswagen has been actively pushing its localization strategy with the slogan “In China, For China.” According to the upgraded technical cooperation agreement signed between Volkswagen Group and China FAW, both parties plan to introduce over 11 new models for the Chinese market starting in 2026. At the same time, Volkswagen’s new energy vehicles will adopt new electric platforms like CMP and electronic architecture like CEA, accelerating the transformation to smart electric vehicles. In terms of product planning, Volkswagen Group China will first introduce new models like the Audi E5 Sportback, Q6L e-tron (pure electric), and Audi A5L/A5L Sportback (fuel) in the second half of 2025. By 2026, over 20 intelligent connected models will be launched in China, covering various powertrains. By 2027, Volkswagen’s new energy vehicle lineup will expand to about 30 models, with pure electric vehicles making up 30 of them. By 2030, this will increase to around 50 models, with pure electric vehicles accounting for 30. Through its localization strategy, Volkswagen aims to better meet the needs of Chinese consumers for intelligent and personalized vehicles, enhance product competitiveness, and strengthen its position in the Chinese market.
Volkswagen Group has lowered its full-year 2025 performance outlook, expecting full-year sales revenue to remain flat compared to the previous year, lower than the previous forecast of a 5% maximum increase. The overall sales return on sales for the group is expected to be between 4.0% and 5.0%, down from the previous forecast of 5.5% to 6.5%. The company also expects the sales return on operations for the passenger car and light commercial vehicle segment to be between 4.5% and 5.5%, while the commercial vehicle segment is expected to reach 7.0% to 8.0%, but revenue will decline significantly compared to the previous year. The financial services division is expected to grow by up to 5%, with operating profit of approximately €4 billion.
Volkswagen Group stated that under the lower end of its forecast range for operating results, net cash flow, and net liquidity, the current U.S. tariff rate of 27.5% will remain in effect through the second half of 2025; however, under the upper end of the forecast range, these tariffs are expected to be reduced to 10%. The future development of tariff policies and their potential reverse effects remain highly uncertain.
