Volkswagen Group Q1 2013 global performance
Considering challenging market conditions which has been having a negative impact on the auto sector in particular, Volkswagen has seen satisfactory performance during the first quarter of 2013. During the period January to March 2013, the company has seen sales revenues to the tune of €46.6 billion as compared to €47.3 million in the same period of the previous year. Operating profit stood at €2.3 billion as compared to €3.2 billion in Q1 2012. Cost and investment management are key factors alongside optimization of processes in Volkswagen’s Strategy 2018.
Plans ahead for the year include launch of a large number of new models which will gain the company stronger market position in global markets. The company expects to see enhanced deliveries YoY despite the fact that competition is at its peak and likely to have an intense impact on sales during the year. VW Group is particularly optimistic about the modular toolkit system which is being augmented and which will have a positive effect on cost structures. For this year, Volkswagen Group launches across passenger car brands will be a focus in order to facilitate expansion in global markets, and deliveries are expected to increase.
Volkswagen Group India sales for the Q1 period have fallen by a quarter. It was only Audi India which reported favorable sales which were at 1104 units, up 10% in March 2013. Where Q1 2013 was concerned, Audi India reported 15% increase in sales. VW India delivered 16,600 units during this January to March 2013 period, as compared to 20,400 units in Q1 2012 thus resulting in a sales decline of 18.5%. In March 2013, VW India delivered 6,800 units as compared to 8,400 units in March 2012 showing a decline of 19.05% during the month. Skoda India 2013 Q1 contributed to 9.7% sales decline in Asia-Pacific region.
We expect the Volkswagen Group’s 2013 sales revenue to exceed the prior-year figure. Given the ongoing uncertainty in the economic environment, the Group’s goal for operating profit is to match the prior-year level in 2013. This applies equally to the Passenger Cars Business Area, the Commercial Vehicles, Power Engineering Business Area – which remains affected by high write-downs relating to purchase price allocation, among other things – and the Financial Services Division. While we shall see positive effects from our attractive model range and strong market position, there will also be increasingly stiff competition in a challenging market environment.