Volkswagen's net profit plummeted 30.6% to €12.4 billion in 2024 due to rising production costs and intense competition from Chinese automakers. Despite a slight increase in overall sales to €324.7 billion, the company’s operating result dropped 15% to €19.1 billion. The decline was attributed to higher fixed costs and €2.6 billion in restructuring expenses.

Volkswagen also faced challenges with its transition to electric vehicles and saw nearly a 10% drop in deliveries in China, contributing to a 3.5% overall decrease in global sales, with around nine million vehicles sold. The company’s operating margin fell to 5.9% in 2024, down from 7% the previous year.

While Volkswagen expects a slight revenue increase of up to 5% in 2025, it plans to focus on cost reduction and profitability, aiming for a margin between 5.5% and 6.5%.