The Volkswagen Group released its first-half (H1) 2023 results Thursday, showing a 48% rise in electric vehicle deliveries. Despite expectations for a higher proportion of EV sales in the second half of the year, Volkswagen has lowered its overall delivery guidance, citing logistics bottlenecks.
Volkswagen EV deliveries up H1 2023
Between the Volkswagen Group umbrella of brands that includes VW, Audi, Skoda, Cupra, Porsche, and more, the auto manufacturing giant delivered roughly 322K EVs in the first half of the year, up 48% year-over-year (YOY).
EVs accounted for 7.4% of total Volkswagen deliveries, compared to 5.6% in H1 2022. This includes 18% YOY (91% QoQ) growth in China, a market VW has struggled in with low-cost, domestic EVs.
The growth comes after CEO of Volkswagen Passenger Cars, Thomas Shafer, told top employees earlier this month, “The roof is on fire. This is the final wake-up call,” according to quotes from German media outlet Manager Magazin.
The Volkswagen Group generates around 40% of its revenue from China, which is why the automaker is making it a top priority.
Volkswagen, known for being a market leader in China, fell behind China’s BYD in passenger car sales in the first half of the year as domestic EV makers continue grabbing a bigger market share.
To boost sales, the Volkswagen Group has partnered with several EV makers in China recently. Audi confirmed it was teaming up with SAIC Motors last week to develop new EVs in the region.
More recently, VW invested $700M for a roughly 5% stake in XPeng Motors. VW plans to launch two models through the strategic partnership, starting in early 2026, while leveraging its tech platform, connectivity, and ADAS software.
Looking ahead, Volkswagen expects a higher proportion of BEV sales in the second half of the year due to “seasonal effects” and “significantly reduced delivery times.” VW aims for EVs to account for 8% to 10% of its total delivery share for the year.
Meanwhile, Volkswagen is lowering overall delivery guidance by around 500K units for the year. The automaker said pressures have shifted from semiconductor shortages to transportation and logistics delays.
The second half of the year should see lower material costs and gradually easing logistics bottlenecks, according to VW. Despite lower delivery expectations, VW confirmed its financial outlook for the year.
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