German auto major Volkswagen Passenger Cars has reported its financial result for 2022, with revenue of 74 billion euro, (Rs 650,312 crore), up 8.82 percent, an operating profit of 2.6 billion Euro (Rs 22,848 crore) which it says was achieved despite the challenging economic situation and unsettled geopolitical environment, thanks to effective sales management and rigorous cost optimisation.
Furthermore, it has announced that still expects to have an all-electric share of around 80 percent in Europe by 2023. It plans to launch 10 new electric models by as early as 2026, including an all-electric Volkswagen EV under 25,000 euro (Rs 21.97 lakh) which makes its world debut today as the ID. 2all study.
In terms of company performance, supply constraints and the resulting lower delivery volumes had a significant negative impact on its earnings, especially in the second half of the year. The North and South America regions made a large contribution to earnings in 2022, with market share to be robustly expanded going forward.
Thomas Schafer, CEO, Volkswagen
Patrik Andreas Mayer, CFO, Volkswagen said, “The past fiscal year was marked by enormous geopolitical uncertainties, the sharp rise in commodity and energy prices, disrupted supply chains as well as the negative impact of the pandemic in China. Our measures to reduce costs and increase profit had an impact, leading to a robust result given this challenging environment.”
The German carmaker aims to double its market share in North American and the USA to at least 5 percent by 2030. It also plans to 5 billion euro (Rs 43,940 crore) in e-mobility and digitalisation by 2027. A further billion euro (Rs 8,788 crore) will be invested in South America by 2026 to additionally boost the company’s market share and kick-start the transformation to e-mobility. Initial market tests with ID. models in South America are already underway.
In 2022, the company sold 330,000 EVs globally, marking a 23.6 percent YoY growth. By 2030 it aims to have 8 out of 10 cars sold in Europe to be battery electric vehicles. The BEV share is to grow likewise in North America, with a target of 55 percent by 2030.
In addition, Volkswagen will launch 10 new BEV models by 2026. Four new electric models are coming soon: The second-generation ID.31 and the sporty ID.3 GTX1, the long-wheelbase ID. Buzz1 and the flagship ID.71. Electric vehicles will then be available in almost every volume segment, and the Volkswagen brand aims to offer the broadest e-portfolio compared with the competition, from the entry-level BEV to the ID.71 electric sedan.