Volkswagen Group has recently announced a slight increase in their full-year sales revenue for 2024, reaching €324.7bn ($353.7bn) compared to €322.3bn ($351.1bn) in the previous year. This growth was primarily driven by positive developments in the financial services sector.
However, despite the overall increase in sales revenue, the automotive business segment saw a slight decrease in revenue to €265.9bn, mainly due to a reduction in volumes. The company’s operating result for 2024 also experienced a 15.4% decline to €19.1bn compared to €22.5bn in 2023. This decline was attributed to a significant rise in fixed costs, including extraordinary expenses of €2.6bn, primarily for restructuring purposes.
In Q4 2024, Volkswagen’s sales revenue reached €87.38bn, slightly higher than the €87.18bn reported in Q4 2023. The operating result for Q4 2024 also saw a 2.1% decline to €6.15bn compared to €6.28bn in the same period of the previous year. The underlying operating result for 2024 stood at €21.7bn.
Vehicle sales in North America and Europe remained consistent with the previous year, with a total of 9.0 million units sold in 2024, a 3.5% decrease from 9.4 million units in 2023. Despite the decrease in vehicle sales, there was a significant increase in the order intake for all-electric vehicles in Western Europe, with an 88% rise in FY 2024.
Looking ahead, Volkswagen anticipates a sales revenue increase of up to 5% compared to the previous year, with an operating return on sales projected to be between 5.5% and 6.5%. The company also expects an investment ratio between 12% and 13% in the automotive division for 2025, with automotive net cash flow estimated to be between €2bn and €5bn.
Challenges are anticipated in the form of political uncertainty, increasing trade restrictions, geopolitical tensions, intense competition, and more stringent emissions-related requirements. However, Volkswagen aims to address these challenges by keeping combustion engines competitive, investing in electric models and software, and strengthening its regional presence.
Volkswagen Group CFO and COO, Arno Antlitz, stated, “In a challenging competitive environment, we achieved a decent overall financial performance in 2024. Our outlook reflects the global economic challenges and the profound changes that are happening in the industry.”
In line with their strategic goals, Volkswagen recently unveiled the ID. EVERY1 concept, offering a glimpse into their upcoming entry-level EV expected to launch in 2027. This signifies the company’s commitment to innovation and sustainability in the automotive industry.
