Volkswagen Group recorded 515 trillion won in sales and 30 trillion won in operating profit in 2024
Mar 12, 2025
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Overall sales increased slightly year-on-year due to strong financial services business, but net auto sales decreased slightly year-on-year to 265.9 billion euros (407.7388 trillion won).
Operating profit was 19.1 billion euros (30.3145 trillion won), down 15% from 22.5 billion euros a year earlier. This is also the result of a decrease in sales. The operating profit margin was 5.9%, barely exceeding the minimum survival standard of 5% for large global automakers.
The Volkswagen Group achieved good financial performance in 2024 despite a challenging competitive environment, said Arno Antlitz, CFO and COO of Volkswagen Group. "In 2025, we are also keeping internal combustion engines technically competitive, investing in electric vehicle models and software simultaneously, and continuing to strengthen our position in the United States through clear growth and investment strategies."
The decrease in operating profit is mainly due to an increase in fixed costs, including special compensation amounting to 2.6 billion euros, for restructuring.The 2024 operating margin, adjusted for non-operating items such as restructuring costs and provisional payments and evaluation effects, was 6.7%.
The automotive sector's net cash flow fell short of expectations year-on-year due to continued high investment and a decline in operating profit. In the fourth quarter of 2024, it posted solid net cash flow of 1.7 billion euros, driven by lower working capital.
New car sales in 2024 were 9 million units, down 3.5% from 9.4 million units in the previous year. The South American market has grown, but it has not offset a sharp drop in sales of more than 20% in China. Sales in the North American and European markets remained at the level of the previous year.
Sales in Western Europe increased due to the impact of product portfolio expansion and strengthening. Electric vehicles have roughly doubled (+88%) and overall growth has reached +15%.
The Volkswagen Group expects sales to increase by more than 5% year-on-year in 2025. The group's operating margin is also expected to be between 5.5 percent and 6.5 percent.
In 2025, Volkswagen Group will showcase European innovation around the world as a global automotive technology leader, as production of reasonably priced e-mobility, autonomous vehicles, and battery cells in Germany increases, Volkswagen Group CEO Oliver Blume stressed,
In the automotive business sector, it expects investment rates to reach 12-13% this year and net cash flow in the automotive sector to be between 2 billion and 5 billion euros. This includes future investments and cash outflows following restructuring measures from 2024.
We expected challenges this year in an environment marked by political uncertainty under the Trump administration, increased trade restrictions and geopolitical tensions, intensifying competition, volatile raw materials and energy and foreign exchange markets, and stricter emissions-related demands.
Editor Kim Tae-jin, tj.kim@carguy.kr
This article was translated by Naver AI translator.
