Tag Archives: Volkswagen

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Volkswagen’s Q2 Profit Falls 33% Amid Tariffs and Restructuring Costs

Volkswagen, Europe’s largest carmaker, reported a steep decline in second-quarter net profit, as a mix of trade barriers, regulatory penalties, and internal restructuring weighed heavily on its bottom line. Despite growth in electric vehicle (EV) sales, the German auto giant faces mounting headwinds in a turbulent global market.

From April to June, Volkswagen posted a net profit of €2.29 billion — a sharp 33% drop compared to the same period last year. The company cited significant costs tied to 27.5% U.S. tariffs on car imports and ongoing restructuring efforts as key factors behind the slump.

The downward trend continues from the first quarter, where net profit fell by a staggering 40.6% to €2.19 billion, primarily due to carbon emissions fines and rising customs costs related to global trade tensions.

While second-quarter revenue reached €80.6 billion, it marked a 3% dip year-over-year — a surprising result given a modest 1.2% increase in vehicle deliveries, which totaled 2.27 million units. In contrast, first-quarter revenue had seen a slight bump of 2.8%, landing at €77.56 billion.

Electric Surge Can’t Offset Premium Vehicle Weakness

One bright spot in VW’s quarterly report was the performance of its EV division. Sales of battery-electric vehicles soared by 38%, reflecting the group’s continued push toward electrification and its ambition to compete with Tesla and Chinese EV brands. However, the strong EV momentum was not enough to offset weaker performance in the group’s premium and luxury vehicle segments, which have been hit harder by economic uncertainty and shifting consumer priorities.

Forecast Revisions Reflect Global Volatility

In light of ongoing challenges, Volkswagen revised its full-year 2025 revenue forecast, now expecting results in line with last year rather than the previously anticipated 5% growth. The revision underscores the automaker’s cautious outlook amid political instability, volatile energy and raw material prices, and intensifying global competition.

The group also flagged negative impacts from fluctuating currency exchange rates and tightening environmental regulations across key markets — factors that are reshaping the economics of automotive manufacturing at a global scale.

Navigating a Tense Transition

Volkswagen’s Q2 results serve as a reminder of the complex transition facing traditional automakers. While the group is making headway in the EV space, legacy costs and geopolitical friction continue to disrupt its recovery. As global markets become increasingly fragmented and sustainability demands accelerate, VW’s ability to adapt — both structurally and strategically — will determine how well it can weather the next phase of automotive evolution.

Source: Volkswagen

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Volkswagen Surpasses Tesla in European EV Sales for First Half of 2025

In a major shake-up of the European electric vehicle (EV) landscape, Volkswagen has overtaken Tesla as the top-selling EV brand in the region during the first half of 2025, according to new data from Dataforce. The German automaker sold 133,465 electric cars across the EU, EFTA, and UK markets between January and June — a commanding 78% increase over the same period last year.

In contrast, Tesla’s European performance faltered significantly. The U.S. brand saw its EV sales drop by 33%, totaling just 107,878 units in the first six months of the year. That decline cost Tesla its crown as Europe’s EV king, as Volkswagen surged ahead with a lead of 24,587 units.

While Tesla still held onto two of the top spots for individual model sales — the Model Y and Model 3 — it was the only major manufacturer to register a year-over-year sales drop. Even a June resurgence, where Tesla led the monthly EV sales charts, wasn’t enough to close the gap created earlier in the year.

Legacy Brands Making Electric Strides

Volkswagen’s triumph as a brand, not as part of the larger Volkswagen Group, underscores the shifting momentum in Europe’s highly competitive EV market. The brand’s success was largely fueled by strong performances from its ID lineup, including the ID.4, ID.7, and ID.3 — all of which ranked among Europe’s five best-selling EVs for the first half of the year.

Other European manufacturers also posted strong growth. BMW took third place overall with 93,576 EVs sold, marking a 14% increase year-over-year. Škoda, benefiting from the runaway popularity of the new Elroq and refreshed Enyaq, achieved a staggering 146% increase in sales, moving 70,947 units and cementing its status as a rising force in the EV space.

Renault also posted a notable 58% gain, thanks largely to the buzz surrounding the retro-styled Renault 5.

Tesla’s Global Challenges Reflect in Europe

Tesla’s global operations have encountered headwinds in 2025, with CEO Elon Musk previously attributing early-year production delays to factory upgrades needed for the revamped Model Y. Despite promises of a demand rebound, the company’s European numbers have yet to reflect any meaningful recovery.

In June alone, Tesla sold 32,605 EVs in Europe — a 21% decline compared to the same month in 2024. Meanwhile, its competitors surged ahead: Volkswagen sales grew by 9%, BMW by 16%, Škoda by a remarkable 189%, and Renault by 22%.

A Growing Market, but Shifting Leaders

The overall European EV market remains on a robust growth trajectory, expanding by 24% year-over-year. In the first half of 2025, a total of 1,177,051 electric vehicles were sold, up from 944,858 in the same period in 2024.

However, the dynamics within the market are evolving rapidly. Tesla’s early-mover advantage is being steadily eroded by established automakers who are now hitting their stride in EV development and production.

With Volkswagen firmly in the lead and competitors gaining ground, the second half of 2025 is set to be a pivotal chapter in the race for EV dominance in Europe.

Source: Automotive News

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Volkswagen ID.3 Retains 91% Battery Capacity After 160,000 km Endurance Test

In a landmark assessment of long-term EV durability, Germany’s ADAC has completed a rigorous four-year endurance test of the Volkswagen ID.3 — and the results are a major win for the electric mobility movement. After covering more than 160,000 kilometres under demanding conditions, the ID.3 Pro S retained an impressive 91% of its original battery capacity, far exceeding expectations.

Tested at the ADAC’s Test and Technology Centre in Landsberg am Lech, the ID.3 Pro S — equipped with a 77 kWh battery — was subjected to an aggressive usage profile designed to accelerate battery wear. Over 40% of its charging sessions used DC fast chargers, and the vehicle was often left fully charged for days at a time, both conditions known to stress lithium-ion cells. Despite this, the ID.3’s battery degradation remained minimal.

Martin Sander, Volkswagen Board Member for Sales, Marketing and After Sales, commented on the results: “A high battery capacity of over 90 per cent after 160,000 kilometres confirms that our ID. models are also very attractive as used cars and continue to meet the requirements of our customers.”

Notably, this was the first endurance test conducted by the ADAC on a member of Volkswagen’s all-electric ID. family. Between test drives, engineers frequently inspected the car’s battery health, chassis, and software performance — areas that could show early signs of wear in EVs subjected to extreme usage.

Volkswagen’s commitment to over-the-air updates also played a pivotal role in the ID.3’s performance. Throughout the test, the vehicle received several software upgrades, including the Electric Vehicle Route Planner. This intelligent feature calculates the most efficient charging stops on long routes, considering traffic and energy usage forecasts. Other updates improved power consumption, especially during short trips and colder weather conditions — a critical factor for European buyers facing winter range anxiety.

Beyond the battery, the ID.3’s mechanical integrity also stood strong. ADAC engineers reported that the chassis, axles, and steering remained in solid condition, with no major faults or weaknesses despite the high mileage.

For consumers still wary of the longevity of electric vehicles, the ID.3’s performance is a reassuring data point. Volkswagen backs the battery of every ID.3 with a guarantee of at least 70% capacity after eight years or 160,000 kilometres — a threshold the tested vehicle surpassed with ease.

ADAC’s recommendation is clear: keep your software up to date to enjoy the full potential of your EV. And if you’re in the market for a used electric car, the ID.3 might just be one of the most reliable choices out there.

Source: Volkswagen