FRANKFURT (AFP) – German auto giant Volkswagen yesterday reported a forecast-beating rise in profits for 2023, boosted by higher vehicle deliveries, but gave a cautious outlook for this year.
Net profit rose 13.1 per cent to EUR17.9 billion (USD19.6 billion) from the previous year. Sales rose more than 15 per cent to EUR322.3 billion.
Analysts surveyed by financial data firm FactSet had forecast profits to come in at EUR15.7 billion, slightly lower than 2022.
In all, Volkswagen delivered some 9.2 million cars to customers in 2023, an improvement of 12 per cent.
This was the first increase in deliveries following three straight years of declines, after production was disrupted by shortages of key components amid supply chain issues.
The auto giant’s units sold rose by 20 per cent in Europe and in the North America region by 18 per cent.
In China, sales also grew, but at a far more modest rate of 1.6 per cent. The growth was slower than in the previous year and was the latest evidence that Volkswagen is losing ground in its most important market.
Volkswagen has fallen behind domestic competitors in China, losing its title as the best-selling auto brand to BYD.
The 10-brand group – whose models include Audi, Porsche and Skoda – last year singled out China and the United States as key markets for its future growth, and it is also looking to increase profit margins.
Looking ahead, the German auto giant expects vehicle deliveries to advance in 2024, but by up to just three per cent, due to tougher international competition and potential supply chain problems.
It warned of “persistently high inflation in major economic regions” as well as the “continuing geopolitical tensions and conflicts”, pointing to the Ukraine-Russia conlict and “confrontations in the Middle East”.
Volkswagen sold 771,000 battery-powered cars in 2023, 35 per cent more than the previous year, but still only 8.3 per cent of the group’s total sales.
The carmaker has ploughed huge sums into producing more electric vehicles but there have been concerns that this shift is stalling, amid low demand and a weak global economy.
