Strong performance by Brand Group Volume attributed to four robust brands
The impressive performance in Q1 by the Brand Group Volume can be attributed to the successful growth of the individual brands Volkswagen, Škoda, SEAT/CUPRA, and Volkswagen Commercial Vehicles.
Volkswagen brand saw a slight increase in deliveries, with a total of 1.02 million passenger cars delivered in the first quarter of 2023 (+0.9 percent). The brand’s success was largely driven by full-electric vehicles, accounting for nearly half of all BEVs delivered by the Group (+31.2 percent). Despite challenges and supply constraints, operating profit before special items in Q1 2023 improved to EUR 608 million, with sales revenue increasing to EUR 20.5 billion. However, higher material costs and exchange rate effects impacted the operating return on sales, which stood at 3.0 percent for the quarter.
Škoda Auto had a strong first quarter, delivering 209,600 vehicles worldwide (+12.6 percent). The all-electric Enyaq iV family saw a significant increase in deliveries, contributing to a sales revenue of EUR 6.8 billion and an operating profit of EUR 542 million. The return on sales stood at 8.0 percent.
SEAT/CUPRA experienced substantial growth in electric vehicle deliveries, increasing by over 300 percent to 9,200 units in Q1 2023. Overall, SEAT/CUPRA delivered 125,218 vehicles, marking its strongest first quarter. The operating profit rose to EUR 144 million, with an operating return on sales of 4.0 percent.
- Advertisement -
Volkswagen Commercial Vehicles continued its positive trend in Q1 2023, with deliveries up 18.7 percent to 97,189 vehicles. The ID.Buzz contributed to the growth in BEV deliveries to 5,500 units. Sales revenue reached EUR 3.6 billion, with operating profit soaring to EUR 171 million and operating return on sales increasing to 4.8 percent.
Outlook
The Brand Group Volume plays a significant role in financial stability and innovation within the Volkswagen Group, providing resilience against external challenges. The focus is on streamlining operations and maximizing synergy potential to achieve a consolidated operating return on sales of 8 percent by 2025. For 2023, the brand group anticipates a significantly higher operating return on sales compared to 2022’s 3.6 percent.