Volkswagen expects slow car sales through 2024

Volkswagen on Friday forecast that its sales may slow down through 2024, this new assessment follows other car makers in the industry due to rising competition and slowing demand.

The top European car maker group said its growth could be limited to 5 percent in 2024 compared to 15 percent in 2023 with an annual revenue of 322 billion euros ($349 billion).

That growth rate suggests that the revenue could go up to 338 billion euros this year, higher than LSEG analyst’s 316 billion estimate.

Volkswagen Chief Financial Officier Arno Antlitz cautioned about the economic outlook and intense competition in 2024 but he is still looking this year for positive outcomes with new product launches.

VW’s share declined as much as 7.1 percent to lowest in more than four weeks after annual results with a 7 percent down in the operating margin from 7.9 percent in 2022.

Volkswagen predicted an identical operating margin of 7 percent to 7.5 percent in 2024.

Its investment ratio is forecast to peak in 2024 at 13.5 percent to 14.5 percent raised by spending of its key market China and it would gradually decline in subsequent years to around 11 percent by 2027.

(source – Yahoo)