Volkswagen Group posted solid H1 results for 2023, with rising sales revenue and strong underlying operating profit. This is in line with the Group’s “value over volume” strategy, announced at the recent Capital Markets Day. The Group's BEV strategy is also making further progress, with deliveries in the first half of the year increasing by around 50 percent year-on-year. In Europe, the Group increased its BEV deliveries by as much as 68 percent, underscoring its position as market leader in Europe. As the year progresses, significantly shorter delivery times, the remaining high order bank of 1.65 million vehicles and stable demand should provide further tailwinds. The solid net liquidity of EUR 33.6 billion in the Automotive Division also gives the Group the necessary strength and flexibility to continue investing in key regions and growth areas.


Oliver Blume, CEO Volkswagen Group: “We have strategically realigned and restructured the Volkswagen Group, with a clear plan and measurable milestones. In the first half of the year, the Volkswagen Group delivered reliably with very solid results. Sales in North America are picking up, we are strengthening our position in China through technological partnerships and on top of that the trend for fully electric vehicles is moving in the right direction. What is important to us is long-term, sustainable growth, with a focus on value over volume.”

Solid results

In the first half of 2023, the Volkswagen Group achieved an operating profit before valuation effects mainly from commodity hedging outside hedge accounting of EUR 13.9 billion, an increase of about 13 percent. This resulted in a corresponding margin of 8.9 percent, above the guidance range of 7.5 percent to 8.5 percent. Operating profit came in at EUR 11.3 billion (H1 2022: EUR 13.2 billion) largely due to non-cash hedging effects mainly from commodity hedging amounting to EUR - 2.5 billion (Q1 2023 EUR - 1.3 billion; H1 2022: EUR 0.9 billion).

Overall revenue grew by 18 percent to EUR 156.3 billion in H1 (H1 2022: EUR 132.3 billion), driven by a continued recovery in volume as well as solid mix and pricing. Vehicle deliveries declined by 1 percent in China, although there were notable signs of recovery towards the end of the reporting period. Overall, the Group continued to see solid demand.

The Group’s electrification strategy continued to accelerate, with battery electric vehicles (BEV) representing a 7.4 percent share of total deliveries in the first half (compared to 5.6 percent in H1 2022) and including 18 percent year-on-year growth in China in Q2, demonstrating a positive trend. In a challenging market environment, Volkswagen was able to increase market share particularly in Europe where the Group remains the BEV segment market leader. In the context of a more challenging market environment, Volkswagen Group aims to reach a BEV share of 8-10% of total deliveries in FY 2023. Seasonal effects, along with the significantly reduced delivery times, are likely to contribute to a higher proportion of BEV sales in H2.

In view of the continuing bottlenecks in the logistics chains, net cash flow was muted at EUR 2.5 billion in the first half of the year. In anticipation of an improving logistics situation and minor production adjustments in the second half of the year, Volkswagen Group continues to target full-year net cash flow of EUR 6-8 billion and has taken decisive measures to ensure that the lower end of this range is met.

The automotive division’s net liquidity remained solid at EUR 33.6 billion at the end of H1, which will continue to support the Group’s targeted sustainable value strategy.

Arno Antlitz, CFO & COO Volkswagen Group: “In the first half of the year, we achieved solid financial results and took major steps to improve our competitiveness. The focus for the second half is now on strengthening net cash flow. With the launch of performance programs at all brands and our strategic decisions in China, we will improve the competitive position of the Volkswagen Group even further.”

Financial Outlook for FY 2023 confirmed

Volkswagen Group confirms the financial outlook for FY 2023 published on March 3, 2023. The outlook for deliveries is slightly adapted for 2023 from around 9.5 million to 9 to 9.5 million while the Group remains fully on track to meet the sales revenue goal.

As anticipated, supply chain disruptions have continued to ease in H1 2023, with pressure shifting from semiconductor shortages to transportation and logistics delays. H2 should be supported by lower raw material costs and gradually easing logistical bottlenecks. The performance programs for the brands are designed to deliver their first results in H2, further strengthening the Group’s position in an increasingly competitive environment.

In line with the steering model announced at the recent Capital Markets Day, the Group’s focus remains on meeting profitability and cash flow targets. An emphasis on value-driven production is expected to support the already strong results. Prioritizing sustainable profitability over volume growth will enable the group to meet operating margin and cash flow targets.

Acceleration of strategic transformation in China

Volkswagen Group is stepping up the pace of its transformation in China, where the Group aims to remain the most successful international OEM and amongst the top 3 in the market, building on solid existing foundations in H1.

After a challenging start in the first two months of the year, the Group’s delivery figures in China in March through May were significantly up compared to the previous year. A decrease in June was the result of a high base in the same month last year and non-recurring effects, including a tax exemption for ICE vehicle purchases and local government subsidies. Volkswagen Group China delivered a total of 1,451,900 vehicles (-1.2 percent compared to the previous year) in the first half of 2023.

The Volkswagen Group has announced two partnerships in the region: a strategic partnership between the Volkswagen Group and Xpeng as well as the expansion of an existing cooperation between Audi with FAW and SAIC. These collaborations are intended to expand the existing product range to include models for particularly promising customer and market segments. The collaborations align with the company's "in China for China" strategy, which enables it to address market-defining trends in China at an early stage and better leverage the growth momentum of the Chinese market.

Ambitious targets and performance programs for Group brands

As noted during the recent Capital Markets Day, Volkswagen Group is focused on its strategic realignment in line with the 10-point plan and has taken decisive steps in H1 to strengthen profitability and cash flows and reduce capital intensity.

Realignment of Platforms

The Group is realigning its technology platforms to provide the brands with leading technological innovations and to unlock economies of scale.

In terms of architectures, the Group has outlined a clear path forward for the establishment of the group-wide SSP platform. As early as 2024, the new PPE is expected to be used as a competitive architecture, followed by the second generation MEB+ from 2025 forward.

The Group’s battery strategy and ramp-up offer the Group maximum flexibility and cost benefits through the Unified Cell to be developed by PowerCo.

The strategic realignment of the CARIAD organisation aims to establish it as an internal software supplier that works closely with the Group’s brands. It also seeks to accelerate the execution of the E³ platforms, the next generation of which will be designed in the newly developed Software-Defined Vehicle hub.

Furthermore, Volkswagen Group continues to make progress towards fully autonomous driving, which the Group sees as a significant future profit pool with major growth potential. Volkswagen has launched autonomous driving test programs in North America and Europe.

Brand Performance Programs

Each brand is launching its own Performance Program, which provides the framework for their advancement. The programs set equally ambitious targets across the individual brands to make them more resilient and profitable. In doing so, they focus on improving their performance in terms of margins, product mix and vehicle equipment. Moreover, emerging business models, such as mobility solutions, shall broaden the scope of opportunities for brands and exploit additional profit pools. This path is supported by the efficient bundling of economies of scale and extensive cost work in the areas of development, materials, production, distribution and fixed costs.

Brand Group results


Four brands continue to lay the foundation for the positive performance of the Core Brand Group, with sales revenue climbing 30 percent in H1. Operating profit strongly increased to EUR 3.8 billion with an operating margin of 5.5 percent, including a strong contribution from North America. In addition to the focus on efficiency in key synergy areas, the strong H1 result was driven by higher sales volume, leaner structures, and consistent cost management.


The operating margin of the Progressive Brand Group was 10 percent in H1 2023. The operating profit was heavily impacted by valuation effects mainly from commodity hedging outside hedge accounting. The underlying operating margin before these effects was above 12 percent.

Gernot Döllner will join the Group Board of Management of Volkswagen AG as the new CEO of AUDI AG, effective September 1, 2023. Döllner held several management positions at Porsche AG including Head of Concept Development and has been Head of Group Strategy, Product Strategy and General Secretariat at the Volkswagen Group since 2021. In Gernot Döllner, Audi has gained a manager with extensive Group and product experience, who will continue to develop and drive forward Audi's strategy together with the whole Audi team.

Sport Luxury

In the Sport Luxury Brand Group, Porsche’s operating margin within the automotive business remained stable at a very high level at 19.3 percent in H1, due to higher deliveries (+15 percent) coupled with constant pricing. The operating result rose 11 percent to EUR 3.9 billion, including EUR 174 million from Porsche Financial Services. Net cash flow within the automotive business stood at EUR 2.2 billion slightly below prior-year level.


TRATON reported a unit sales increase of 22 percent. Overall sales revenue was up 27 percent, driven by strong volume expansion and positivemix and pricing effects as well as growth in vehicle services . Operating profitimproved significantly to EUR 1.8 billion, with an 8.1 percent operating margin, due to better capacity utilization and positive price-mix effects compensating for higher input costs.

Battery Business

PowerCo SE is planning to introduce a completely new manufacturing process, drycoating, in its battery cell production plants in Europe and Northern America. Drycoating has the potential to deliver reductions of about 30 percent in energy consumption and 15 percent in required floor space, thereby saving hundreds of millions of euros each year.


CARIAD improved sales revenue by 32 percent, driven by higher license revenues from MEB cars on the 1.1 platform. CARIAD was able to limit losses to previous year levels while investments in software platforms continued.


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The Volkswagen Group is strengthening its position on the Chinese automotive market with cooperations between the VW brand and XPENG and between Audi and SAIC. The Group is thus forging ahead with its local electrification strategy. The aim is to swiftly tap into new customer and market segments, thereby systematically leveraging the potential of China’s dynamically growing e-mobility market.


The VW brand has concluded a technological framework agreement with XPENG. The initial stage of the cooperation shall provide for the joint development of two VW brand electric models for the mid-size segment in the Chinese market. The China-specific vehicles will supplement the MEB product portfolio and are to be rolled out in 2026 in China. This is subject to the conclusion of final agreements.

As part of the close and long-term strategic cooperation, the Volkswagen Group is to invest approximately US$700 million in the Chinese manufacturer of intelligent electric cars. Volkswagen is thus acquiring 4.99 percent stake in XPENG at US$15 per ADS (*) by way of a capital increase, and will hold a seat as an observer on the XPENG board of directors. The share issuance will be subject to customary closing conditions including applicable regulatory approvals.

Audi has signed a strategic memorandum with its Chinese joint venture partner SAIC to further expand existing cooperation. Joint development activities are to extend the portfolio of fully connected electric vehicles on offer in the premium segment swiftly and efficiently. It is planned to start with electric models in a segment where Audi does not as yet have a presence in China.

The jointly developed e-models are to be equipped with state-of-the-art software and hardware, in order to offer Chinese customers an intuitive, connected digital experience. All parties are contributing their respective core competences to the development effort.

Both agreements also envisage a planned, future joint development of new local platforms for the next generation of intelligent, fully connected vehicles (ICV). The partnerships aim to swiftly expand the Group’s product range with further models from China for China in particularly promising customer and market segments. The details of cooperation on future e-platforms are the subject of further negotiations between the partners.

Ralf Brandstätter, Volkswagen AG Board Member for China, commented: "Local partnerships are an important building block in the Volkswagen Group's 'in China for China' strategy. We are now accelerating the expansion of our local electric portfolio and at the same time preparing for the next innovation step. With XPENG, we now have another strong partner that is one of the leading manufacturers in China in key technology areas.In a competitive and dynamic market environment, we are leveraging the strengths of Volkswagen and our partners to create synergies to bring additional products to market faster. In doing so, we focus on the specific needs of our customers in China. At the same time, we want to significantly optimize development and procurement costs.”

Volkswagen Group (China) Technology Company assumes development responsibility for new Volkswagen models

The recently founded Volkswagen Group China Technology Company (VCTC) is the development partner for XPENG. The new development, innovation and procurement center is the Group’s largest development location outside Wolfsburg. Going forward, this is where over 2,000 development and procurement experts will work on new intelligent, fully connected electric vehicles.

Optimizing development and procurement volumes generates significant synergy potential with cost advantages compared with current vehicle projects.

Partnerships are next important step in the Group’s “in China for China” strategy

The cooperations tie in with the Group’s “in China for China” strategy to address market-defining trends in China at an early stage and leverage the growth dynamics and innovative strength of the Chinese market more effectively. In order to speed up decision-making and development processes in the region, Volkswagen is strengthening its local capacities for e-mobility as well as digitalization and autonomous driving.

To this end, Volkswagen is expanding its Hefei plant in east China’s Anhui Province into a state-of-the-art production, development and innovation hub. Production at Volkswagen Anhui’s new vehicle plant will commence this year. VW Anhui Component Company is building a manufacturing facility for high-voltage battery systems in Hefei. Furthermore, Volkswagen Group China Technology Company is setting up a development and procurement center for fully connected, intelligent electric vehicles in Hefei.

At the same time, the Volkswagen Group is also focusing on partnerships with local high-tech companies. For Volkswagen Group China, high technology localization and systematic customer orientation are the key to playing a leading role in the new era of intelligent connected vehicles (ICV).

(*) ADS = American Depositary Share, 1 ADS represents 2 Class A Shares


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The Volkswagen Group increased its deliveries of all-electric vehicles (BEVs) by 48 percent year-on-year to 321,600 vehicles in the first half of the year. The BEV share of total deliveries rose to 7.4 percent, up from 5.6 percent in the first six months of the previous year. The Group achieved the highest growth in Europe, where deliveries rose by 68 percent to 217,100 BEVs. Here, the Volkswagen Group is the market leader and gained market share. Significantly more customers of a Group brand took delivery of their all-electric vehicles in the USA, too. The increase here was 76 percent to 29,800 vehicles. In China, deliveries were around two percent below the previous year's level at 62,400 BEVs in a particularly competitive market environment. Recently, however, the trend here has also been positive. Following a lower first quarter, 18 percent more BEVs were handed over to customers in the world's largest automotive market in the second quarter than in the prior-year period. Worldwide, the increase in the second quarter was 53 percent to 180,600 vehicles (118,000), and the BEV share of total deliveries rose to 7.7 percent (6.0) in this period.

Around 68 percent of the Group's BEV deliveries were in its home region of Europe, followed by China with 19 percent and the USA with nine percent. Four percent went to other markets.

The Volkswagen Passenger Cars brand delivered 164,800 vehicles by the end of June, slightly more than half of all BEVs in the Group. It was followed by Audi with 75,600 vehicles (group share 24 percent), ŠKODA with 31,300 vehicles (group share 10 percent), SEAT/CUPRA with 18,900 vehicles (group share 6 percent), Porsche with 18,000 vehicles (group share 6 percent) and Volkswagen Commercial Vehicles with 12,300 vehicles (group share 4 percent).

The most successful BEV models in the first half of 2023 were:

    • Volkswagen ID.4/ID.5 101,200
    • Volkswagen ID.3 49,800
    • Audi Q4 e-tron (incl. Sportback) 48,000
    • ŠKODA Enyaq iV (incl. Coupé) 31,300
    • Audi Q8 e-tron (incl. Sportback) 19,500
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The Volkswagen Group is pleased to support the concert series “Sound in the Garden”. All of the upcoming events, can be experienced in the Sculpture Garden of the Neue Nationalgalerie in Berlin. Set to run until September 2023, the series encompasses four free concerts which extend the Volkswagen Group ART4ALL visitor program that regularly grants free access to exhibitions at Neue Nationalgalerie.


Yesterday, German-Iranian musician performed the first concert and presented her music which is influenced by indie pop elements.

“Sound in the Garden“ is being realized as part of the Volkswagen Group ART4ALL visitor program. Jointly developed by Volkswagen and Nationalgalerie – Staatliche Museen zu Berlin, it opens the world of culture and the arts to a large audience. Every Thursday between 4 and 8 p.m., visitors benefit from free access to Neue Nationalgalerie’s exhibitions and collections.

This year’s edition of „Sound in the Garden” marks the second return of this concert series. In 2022, museum director Klaus Biesenbach initiated the launch of the live program, echoing the “Jazz in the Garden” concerts which Neue Nationalgalerie had realized in the 1970s and 1980s to invite guests to a new kind of cultural experience at the museum’s Sculpture Garden. The current program is assisted by Volkswagen Group Fellow Jorgina Stamogianni.

Klaus Biesenbach, Director of the Neue Nationalgalerie in Berlin: “With ‘Summer in the Garden’, I would like to continue an inspiring concert culture in the sculpture gardens of the Neue Nationalgalerie Berlin and the Museum of Modern Art. The wonderful atmosphere at the opening event last night affirmed our purpose. With Volkswagen as a partner on our side, we are able to offer free admission to this programme as well, entirely in line with the motto ‘Culture for All’.”

Benita von Maltzahn, Director Global Cultural Engagement at Volkswagen Group: “The Berlin home of Neue Nationalgalerie is nothing less than a unique museum location. And since its reopening, it has become even more fascinating to explore the architecture and exhibitions. Our partnership with Nationalgalerie – Staatliche Museen zu Berlin is led by the commitment to enable the widest possible audience to engage with culture and the arts. Supporting the concerts in the Sculpture Garden givesguests the possibility to enjoymusic and a visit of the museum for free as part of the Volkswagen Group ART4ALL program, so that even more people shall feel welcome to experience modern art along with new sounds.”

The Volkswagen Group maintains a long-standing partnership with Nationalgalerie – Staatliche Museen zu Berlin. It underlines the corporate commitment to act as trusted partner of projects and institutions in the sphere of culture, the arts and cultural education. In this role, Volkswagen helps its partners to reach a large audience with creative works while also securing visibility for ideas and perspective of a wide range of artists. Bringing together art and people drives a far-reaching and open-minded exchange of views which is a fundamental quality for receptive debates and mutual understanding in our society.


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Today, the Volkswagen Group and its Elli brand became the first automotive company to start trading on the German electricity market of Europe's largest power exchange, EPEX Spot. The basis for electricity trading is a stationary storage system made of e-up! batteries and a new, digital electricity trading platform from Elli. In the future, the stationary storage system – the so-called "PowerCenter" – will store the energy traded on the electricity market. The pilot project is being driven forward jointly by Elli and Volkswagen After Sales and is a first step on the way to the planned Smart Energy Platform. In the future, Volkswagen and Elli want to anchor the growing storage capacities of electric cars and batteries in the energy system and make an important contribution to the energy transition.


"Elli will significantly advance electric mobility and the energy transition," says Elli CEO Giovanni Palazzo. "We are already Europe's largest mobility service provider in the field of charging and energy. We want to further expand this leading position and develop Elli into a leading trading company for battery flexibility. Electricity trading is a major milestone on this path. Our long-term goal is clear: We want to give our customers a clear advantage in terms of electricity prices and at the same time develop new, high-revenue business models that will strengthen Elli in the long term," added.

Kora Töpfer, Head of German Public & Regulatory Affairs at the European Power Exchange EPEX Spot, adds: "We are pleased to welcome the Volkswagen Group and Elli as the first automotive company to trade with us on the German electricity market. Our continuously growing electricity exchange needs companies that want to get involved in trading and control the growth of renewable energies with us in order to compensate for fluctuating demand and energy supply. With Elli, our broad and diverse trading community is expanded by another significant member, for the benefit of the entire market and all trading participants. After all, more activity also means more trading opportunities for all market participants."

This is how Elli electricity trading works: The focus is on an intelligent platform for trading, controlling and optimizing batteries. Bids can be automatically placed on the stock exchange via the platform. The trading results are translated into a timetable and the battery is automatically charged or discharged. Electricity is purchased during periods of low prices (with a tendency towards a high share of renewables) and sold during periods of high prices (with a tendency towards a low share of renewables). As a result, not only can trading revenues be generated, but a better use of renewable energies can also be achieved. The stationary battery storage uses 28 battery systems and 34 e-up! cell modules.

In this pilot project, Elli is gaining valuable experience for the development of a smart energy platform, which can later be used for larger and more complex applications. For example, Elli is currently investigating the possibilities and scalability of large-scale storage systems together with the battery company PowerCo. In the future, the growing e-car fleet can also be integrated into the energy grid via Vehicle-2-Home and Vehicle-2-Grid and serve as a mobile power bank. Thanks to intelligent charging tariffs and algorithms, Elli is already making it possible to charge the car exactly when there is a lot of renewable energy available at low cost.

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