is one of those companies where market sentiment and fundamental reality are currently difficult to reconcile. On the one hand, the group is under considerable pressure to deliver results, but on the other hand, it has industrial substance and strategic depth that clearly sets it apart from many of its competitors. It is precisely this tension that characterizes the current phase – and makes it particularly challenging for investors.
A sober look at the figures and developments of recent years shows why simple judgments are not helpful when it comes to Volkswagen.
Fundamental Development Since 2023
Volkswagen has defended a high level of sales in recent years. In 2023 and 2024, revenues were in the range of around €320 to €330 billion. The first three quarters of 2025 show a similar picture: sales and delivery volumes remain stable, and global demand for the Group’s vehicles continues.
At the same time, however, the earnings situation has deteriorated significantly. While Volkswagen was able to achieve operating margins in the mid-single-digit range in previous years, this key figure has recently come under noticeable pressure. In the first nine months of 2025, operating profit was significantly below the previous year’s level, with the margin remaining in the low single-digit range.
This development makes it clear that Volkswagen continues to sell vehicles, but under conditions that leave significantly less leeway than just a few years ago.
Sales and Market Position
The picture is mixed when it comes to sales. In some regions, deliveries are stagnating or declining slightly, particularly in China, where competition from local manufacturers has increased significantly. In other markets, Volkswagen remains stable or is able to maintain market share.
The development in the battery electric vehicle segment is particularly noteworthy. Volkswagen has recently significantly increased its BEV deliveries in Europe and has moved to the top in several markets there. In some regions, the Group is now ahead of . From a global perspective, Volkswagen is on the verge of becoming one of the world’s highest-volume suppliers of battery electric vehicles.
This position is strategically relevant, even if it comes at the cost of high investments and corresponding margin pressure in the short term.
Why Profitability Is Suffering
The pressure on Volkswagen’s earnings is no coincidence. Several factors are at play simultaneously: High investments in electric mobility, software, and platforms are weighing on operating profit. At the same time, global competition is forcing aggressive pricing, especially in the electric segment. Added to this are structural issues such as cost adjustments, efficiency programs, and geopolitical uncertainties in key sales markets.
The result is a situation in which Volkswagen remains industrially efficient, but has significantly less financial buffer than in the past.
Our Perspective
It is precisely this complex situation that makes Volkswagen interesting. For a long time, the Group was perceived as either too cumbersome or strategically overwhelmed. However, this view overlooked the fact that market phases are not defined by headlines, but by structure.
In a phase in which expectations diverged greatly, Volkswagen was clearly classified—not because everything looked good in the short term, but because risk and opportunity were once again in a comprehensible relationship. It is this type of classification that makes it possible to build positions while the market is still discussing whether there is any need for action at all.
The fact that Volkswagen has since developed much more steadily is no coincidence, but the result of early, structured preparation for precisely this market phase.
Outlook
The coming quarters will show whether Volkswagen can better master the balancing act between transformation and profitability. One thing is clear: the group is under pressure, but at the same time it has resources, market share, and technological foundations that will remain relevant in the long term.
For investors, this phase is neither an environment for quick judgments nor for blind optimism. It requires preparation and a clear understanding of the market phase in which Volkswagen currently finds itself.
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