Due to the impact of tariffs, Volkswagen's global sales in Q2 only increased by 1.2% year-on-year, while sales in the United States plummeted by 16%
Volkswagen's global vehicle deliveries in Q2 slightly increased to 2.27 million units, of which overall sales in the United States fell by 16% year-on-year, contrasting sharply with the 4.4% growth in the first quarter. The increase in sales of gasoline vehicles drove a 2.8% year-on-year growth in Volkswagen's overall sales in the Chinese market
Faced with the dual pressures of high tariffs from the United States and a decline in demand in major markets, Volkswagen's global sales growth has significantly slowed.
On Wednesday local time, Volkswagen announced that the group's global vehicle deliveries in Q2 only increased by 1.2% year-on-year, reaching 2.27 million vehicles.
The U.S. tariffs on imported cars and parts from Europe have directly impacted Volkswagen Group's business in North America. In Q2, Volkswagen's overall sales in the U.S. fell by 16% year-on-year, in stark contrast to the 4.4% growth in the first quarter, demonstrating the direct suppressive effect of the tariff policy on demand.
The high-profit brands under Volkswagen—Porsche, Audi, Lamborghini, and Bentley—saw a year-on-year sales decline of 7.7% in Q2, totaling 480,200 units.
German automakers are actively seeking to reach a new agreement with the Trump administration to replace the current high tariffs, but market pressures are unlikely to ease in the short term. According to Xinhua News Agency, Trump announced on April 2 that a 20% tariff would be imposed on products from the EU. As negotiations make key progress, media reports indicate that the EU is prepared to sign a temporary "framework" agreement, setting Trump's so-called "reciprocal tariff" rate at 10%, which is on par with the baseline tariff imposed on the UK. However, the EU is expected to be unable to obtain the same market access treatment in the U.S. for steel, cars, and other products affected by industry tariffs as the UK.
In the Chinese market, Volkswagen's electric vehicle sales in Q2 plummeted by nearly one-third, mainly due to intensified competition from local brands like BYD. However, the growth in gasoline vehicle sales drove Volkswagen's overall sales in China to increase by 2.8% year-on-year. Similar competitive pressures have also affected other German automakers, with Mercedes-Benz Group experiencing sales declines in both the U.S. and Chinese markets during the same period.
Despite the pressures in major markets, Volkswagen's electric vehicle sales in Europe performed well. Q2 global electric vehicle sales for Volkswagen increased by 38% year-on-year, with the European market seeing a remarkable growth of 73%. Volkswagen sales executive Marco Schubert stated that the company will continue to increase the launch of new models to consolidate its market share in electric vehicles.
Additionally, Volkswagen achieved sales growth in emerging markets such as the Middle East, Africa, Central and Eastern Europe, and South America, partially offsetting declines in North America and Western Europe. Overall, Volkswagen's Q2 global deliveries increased by 1.2% year-on-year, reaching 2.27 million.
Although sales have slightly increased, declining profitability has become a concern.
Volkswagen's Q1 profits have already dropped by 40%, and the structural change of high-profit brands being affected while low-profit models drive growth indicates that the company may face continued profit pressure in the coming quarters. The company's management emphasized that they will continue to advance their electric vehicle strategy and expand into emerging markets to respond to changes in the global market landscape
