Recently, the Volkswagen Group released its financial results for the fourth quarter and full year of 2023. According to the data, the sales revenue of the Volkswagen Group increased by 15% in 2023 to 322.3 billion euros; Group operating profit remained at EUR 22.6 billion (EUR 22.5 billion in 20222); A total of about 9.24 million vehicles were delivered, with an increase of 12% in overall deliveries. Deliveries of pure electric vehicles increased by 35% to 7710,000 units.
Judging from multiple sets of data, the Volkswagen Group will still maintain a good business situation in 2023. However, in the data such as market segment sales and regional fluctuations, we can also see that changes are taking place ......
Facing both opportunities and crises, we are accelerating towards electrification
2023 is an important year for the strategic restructuring of the Volkswagen Group. Last year, we continued to implement the '10-point action plan' and performance plan, and the rectification and sorting work has been completed. We have already charted the course for the strategic restructuring of the Volkswagen Group. Volkswagen Group CEO Oliverblume said that in 2024, the Volkswagen Group will continue to build on this and lay a solid foundation for the accelerated development phase from 2025 onwards.
Since Blume took office in 2022, the Volkswagen Group has invested 180 billion euros in a "10-point action plan", which includes a cycle plan, products, the Chinese market, North American operations, CARIAD, R&D platforms and technologies, batteries and charging, mobility services, sustainability, and capital markets.
From the perspective of development direction, a series of actions of the "10-point action plan" mainly focus on electrification, digitalization, and the "in China, for China" strategy.
Looking at the current auto market, Volkswagen's transformation is to see opportunities. A few days ago, the China Electric Vehicle 100 Association and McKinsey jointly released a research report showing that in 2030, the penetration rate of new energy in the global passenger car market will reach 50%, and the influence of Chinese consumers on global new energy vehicle consumption is increasing day by day, and technology iteration will promote the popularization of new energy vehicles into the fast lane.
At the same time, Volkswagen has also found new sales growth points through strategies such as the "10-point action plan". According to the data, the delivery volume of Volkswagen's pure electric vehicles will grow significantly in 2023, with a total sales of 7710,000 units, up 35% year-on-year, and the proportion of BEV sales in the Volkswagen Group's total sales increased to 83%。
At the same time, Volkswagen is feeling the crisis. In 2023, Volkswagen China's cumulative new energy sales will reach 19180,000 units, an increase of 232%, but still lower than the market growth rate; Specifically, Volkswagen's sales in Europe increased by 20% year-on-year, and North America increased by 18% year-on-year; China remains its largest single market, but at a slower pace, with full-year sales up 2% year-on-year.
In 2024, when opportunities and crises coexist, the Volkswagen Group said that it will continue to focus on investing in the Chinese market, new products, battery business, and platforms for pure electric vehicles and fuel models, and the investment ratio is expected to reach 13 in 20245% to 14A high value of 5%.
In the coming years, the Group expects the investment ratio to gradually approach the target level of 11% in 2027. By making better use of synergies, the Group will be able to limit its initial investments in the five-year plan 2025-2029 to within 170 billion euros.
Profit is the main task, and in the process of transformation, "you need to spend and save".
Profitability remains a top priority, and Volkswagen will never pursue growth at any cost. At the ** communication meeting on January 25, 2024, Volkswagen China Chairman and CEO Braid Bred said.
"Until 2027, the Volkswagen Group will still produce gasoline-powered models," he said. By 2027, the Volkswagen Group will also offer 30 locally produced gasoline and hybrid models. "It is understood that in 2023, the Volkswagen brand will launch a new Magotan Passat, a new Tiguan L, a Polo, a Golf and other fuel vehicles.
For a leading multinational car company, maintaining the fuel fundamentals is conducive to the company's sustainable profitability. However, it is worth noting that this spirit has also been carried over by Volkswagen to the new energy market. While developing its own electrified models, it is also looking for new opportunities.
In terms of independent models, BRD has announced that Volkswagen Anhui will launch its first model for the Chinese market this year; Audi FAW New Energy will officially start production of its first model, the Audi Q6 L e-tron, at the end of the year. By 2027, the Volkswagen Group will offer 30 locally produced gasoline-powered vehicles and plug-in hybrid models. By 2030, at least 30 BEV models will be available in the Chinese market. In the field of fuel vehicles, all major fuel vehicles will be transformed to new energy vehicles.
In addition to independent R&D, the Volkswagen Group also reduces transformation risks by cooperating with external car companies.
On July 26, 2023, the Volkswagen Group announced that the Volkswagen brand and Xpeng Motors have signed a long-term technical framework agreement. At the same time, the Volkswagen Group will also invest approximately $700 million in Xpeng Motors and acquire Xpeng Motors 499% of the shares and will have an observer seat on the latter's board of directors.
In December 2023, Volkswagen Group completed the acquisition of 499%, and confirmed that the two midsize cars produced by the two companies will be launched within three years. The new car will feature the Volkswagen logo and will be equipped with Xpeng's software and autonomous driving technology.
On February 29, 2024, the cooperation between Volkswagen Group and Xpeng Motors revealed new progress: the two parties signed a joint technical cooperation and development agreement to jointly develop two B-class pure electric intelligent connected vehicles for the Chinese market, which have been confirmed to be launched in 2026, the first of which is an SUV. As an important part of the joint development agreement, the two companies have also entered into a joint procurement plan for common parts for models and platforms, with the aim of reducing costs through economies of scale.
"Through our partnership with Xpeng, we will shorten the product development cycle, improve efficiency, and optimize our cost structure. In a highly sensitive market environment, this will greatly enhance the economic competitiveness of products. It is reported that with this solution, the product development cycle is expected to be shortened by more than 30%.