Volkswagen Group (VOW) China Update Presentation summary

2024 performance highlights

• Achieved business goals despite a challenging market with extreme discounts.

• Reached a 22% ICE market share, the highest since 2005.

• Delivered 2.9 million sales, meeting expectations.

• Joint venture operating profit of €1.7 billion, within guidance.

Strategic initiatives and local partnerships

• Advanced the 'In China, for China' strategy with fully fledged local R&D and resilient supply chains.

• Formed and extended partnerships with SAIC, XPENG, and FAW Group for rapid model development.

• Reduced time to market for new models to as low as 24–34 months.

Cost efficiency and technology development

• Achieved a 40% cost reduction in CMP, with a further 10% planned.

• Targeting a 50% reduction in HV-battery costs by 2026.

• Local R&D and LFP battery adoption drive cost structure adjustments.