Volkswagen Sees Growth in Q2 with Electric Vehicle Sales Surging

Volkswagen AG reported strong second-quarter financial results on July 8, driven by a significant increase in electric vehicle (EV) sales. The German automaker posted revenue of €73 billion ($79 billion), marking an 11% increase year-over-year, alongside a 10% rise in net profit.

The company’s EV division experienced a 40% sales jump, led by popular models such as the ID.4 and the new ID.Buzz electric van. Volkswagen’s aggressive push into electrification and expansion of its battery production capacity have played a critical role in capturing market share across Europe, China, and North America.

CEO Markus Schmidt emphasized Volkswagen’s commitment to sustainability and innovation during the earnings call. “We are on track with our transformation strategy, accelerating our transition to electric mobility while maintaining strong performance in traditional segments,” Schmidt said.

The automaker’s software and digital services business also grew rapidly, offering in-car connectivity, autonomous driving features, and subscription-based services that generate recurring revenue.

Volkswagen’s traditional combustion engine vehicle sales declined modestly but remain profitable, especially in emerging markets.

Despite supply chain constraints and raw material price volatility, Volkswagen maintained healthy margins through cost control and operational efficiencies.

The company announced plans to invest an additional €15 billion in EV technology and infrastructure through 2027, including battery research and charging networks.

Market analysts praised Volkswagen’s balanced approach to innovation and operational discipline. “Volkswagen’s strong EV growth combined with its established global footprint position it well for the future,” said Anna Becker, an automotive analyst at EuroAuto Insights.

Following the earnings release, Volkswagen shares rose 4% on the Frankfurt Stock Exchange.