Volkswagen Group Targets Higher Sales, Earnings in China With Lower Costs

By David Sachs

Volkswagen Group expects to increase sales and maintain its market share in China, the world's largest car market, through 2030.

The German carmaker set an annual sales target of about 4 million in 2030--a 23% increase from last year's total and representing a market share of about 15% in the fiercely competitive market, the company said. Its China market share was 14.5% last year.

The sales uptick should lead to a proportionate yearly operating result of around 3 billion euros ($3.21 billion) by 2030, compared with EUR2.62 billion in 2023. The proportionate result excludes the earnings of its joint venture partners in China.

Joint ventures with Chinese firms and other localized production plans should continue to reduce costs, the firm said. It plans to reach cost parity with its Chinese counterparts in the less expensive, compact-car segment by 2026. That segment will eventually comprise more than half of all cars sold in the country, Volkswagen said.

Write to David Sachs at david.sachs@wsj.com

(END) Dow Jones Newswires

April 24, 2024 06:41 ET (10:41 GMT)

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