Volkswagen is expecting a three per cent increase in its car sales this year, well below last year’s figures, when customer deliveries rose by 12 per cent to 9.24 million vehicles.
Presenting the 2023 results of the German automaker, Arno Antlitz, chief finance officer, explained that “the overall economic situation remains challenging.”
However, he added: “We are confident about 2024, despite weak economic outlooks and intense competition.”
Volkswagen stated on Wednesday that it anticipated a boost in vehicle orders in Western Europe in the coming months from new models, including fully electric ones.
The company, which recently launched the electric ID.7 and plans to release a record 30 more new models during 2024, said it had “started the new year with a clearly positive trend” compared to the beginning of last year.
The releases of new electric vehicles come at a time when eMobility market growth has slowed down.
Stellantis, when reporting results last month, predicted a “turbulent” 2024.
Meanwhile, Mercedes-Benz indicated in February that it would delay its electrification target by five years and continue renewing combustion engine models.
When asked about electric vehicle demand, Volkswagen CEO Oliver Blume said they were “the future,” but added: “We are flexible enough to adapt to changes in different markets.”
Volkswagen shares were down 0.65 per cent at 120.16 euros at 1000 GMT, within a flat German market.
The car manufacturer announced moderate outlooks for 2024 and a higher dividend this month, joining rivals such as Stellantis, Ford, and General Motors in delivering cash to investors.
Volkswagen has already announced plans to cut administrative staff costs at its VW brand by a fifth, adding that this would be achieved through partial and early retirements instead of layoffs.
The operating profit margin for the group’s major mass-market brands increased to 5.3 per cent last year from 3.6 per cent in 2022, and the company aims for eight per cent.
