Volkswagen revenue outlook dims after profit slump

Key takeaways

• Volkswagen now expects 2025 sales revenue to match last year’s level.
• Its second-quarter operating profit fell to €3.83 billion from €5.46 billion.
• US tariffs, weaker demand, and costs at Porsche and Audi hurt results.
• The group cut its expected operating margin to 4% to 5%.

The Volkswagen revenue outlook is now flat for 2025, after the carmaker reported a sharp fall in quarterly profit. Volkswagen revenue outlook means the company’s best estimate of money from vehicle and service sales. The new forecast points to a tougher year for Europe’s biggest car group.

What changed in the Volkswagen revenue outlook?

Volkswagen said it now expects 2025 sales revenue to stay around last year’s level. Before this update, it had expected revenue to rise by as much as 5%. Revenue is the total money a company takes in before it pays its bills.

The company also lowered its operating-margin forecast to 4% to 5%. An operating margin shows how much profit remains from each €100 of sales before interest and taxes. Volkswagen had earlier aimed for 5.5% to 6.5%.

That shift matters because Volkswagen sells roughly 9 million vehicles in a normal year. Even a small drop in profit per vehicle can remove billions of euros. The Volkswagen revenue outlook now reflects those thinner returns.

Quarterly operating profit (€bn)€5.46bn€3.83bnQ2 2024Q2 2025

Why did Volkswagen’s quarterly profit fall?

Volkswagen’s operating profit for the April-to-June quarter fell about 30% year on year. It dropped from €5.46 billion to €3.83 billion. The company faced higher costs from US import tariffs and from its own big changes.

A tariff is a tax paid when goods cross a border. Carmakers can pay it directly, raise prices, or accept less profit. Volkswagen said tariffs cost it €1.3 billion in the first half of the year.

Demand also stayed weak in some key markets. Buyers in China have more local electric-car choices, often at lower prices. Meanwhile, Porsche and Audi have faced slower sales and costly changes to their model plans.

The Volkswagen revenue outlook also includes costs for new technology and factory changes. Those moves could help later. But they make this year’s results harder to protect.

What do the key figures show?

Group sales revenue in the first half stood at €158.4 billion, almost unchanged from a year earlier. Yet operating profit fell to €6.7 billion from €10.1 billion. That gap shows why flat revenue does not mean stable profit.

Measure	Earlier view or 2024	Latest figure or view
2025 sales revenue	Up to 5% growth	About flat
2025 operating margin	5.5% to 6.5%	4% to 5%
Q2 operating profit	€5.46bn	€3.83bn
First-half tariff cost	Not stated	€1.3bn

In plain terms, Volkswagen made almost the same sales money but kept much less of it. That’s the core issue behind the Volkswagen revenue outlook. A company can sell many cars and still struggle when costs rise faster.

How could tariffs affect Volkswagen next?

Volkswagen builds some cars for the United States outside that country. That leaves the group exposed when Washington changes import taxes. The exact hit will depend on tariff rules, prices, and where buyers choose to shop.

The company is also trying to sell more cars made in North America. Local production can reduce border-tax risks. Still, factories take years and large sums of money to build or expand.

Volkswagen said its forecast assumes US tariffs of 27.5% on imports from Europe. That rate is much higher than the old 2.5% car tariff. The Volkswagen revenue outlook could change again if trade rules move.

Readers can check Volkswagen’s figures in its official first-half results release. The group’s financial reports page also carries its published earnings documents.

Why does this matter beyond Volkswagen?

Volkswagen employs more than 600,000 people worldwide and owns brands from Skoda to Bentley. Its results offer a useful look at the pressure on large European carmakers. They must fund electric cars while protecting profits from petrol and diesel models.

China is especially important because it is the world’s largest car market. Local brands have grown quickly in electric vehicles. That creates price pressure for foreign firms, including Volkswagen.

The Volkswagen revenue outlook is not a prediction of a sales collapse. It is a warning that the company expects little room for growth this year. Investors will watch later quarters for signs that costs and demand are improving.

FAQs

What is Volkswagen expecting for 2025 revenue?

Volkswagen expects revenue to remain around the same level as 2024. It had previously expected growth of up to 5%.

Why did Volkswagen cut its profit forecast?

US tariffs, weak demand, and higher costs at key brands reduced profit. The group now expects a 4% to 5% operating margin.

How large was Volkswagen’s second-quarter profit fall?

Operating profit fell to €3.83 billion from €5.46 billion a year earlier. That was a decline of about 30%.