On April 30, Volkswagen Group reported its financial results for the first quarter of 2026, posting revenue of €75.657 billion ($86.3 billion), down 2.5% year-on-year. Affected by tariff pressures, geopolitical uncertainty, and intensifying competition from Chinese automakers, operating profit for the quarter fell 14.3% year-on-year to €2.463 billion ($2.81 billion). The operating margin declined to 3.3%, compared with 3.7% in the same period last year. Rising raw material costs, continued electrification investment, and weakening demand in certain markets collectively weighed on profitability. VW financial data in Q1 Despite this, Volkswagen maintained its full-year guidance, expecting revenue growth of 0% to 3% and an operating margin of 4.0% to 5.5%, higher than 2.8% in 2025. Cash flow performance improved during the quarter. Net cash flow from the automotive business reached €2.0 billion ($2.28 billion), compared with negative €800 million ($912 million) a year earlier. This improvement was driven by tighter investment pacing and reduced tax outflows. As of the end of the quarter, the group’s net liquidity stood at €34.2 billion ($39.0 billion), indicating overall financial stability. In terms of sales, Volkswagen delivered 2.049 million vehicles globally in the first quarter, down 4% year-on-year. The decline was most pronounced in China, where deliveries fell 14.8% to 548,700 units. VW deliviery data in Q1 Battery electric vehicle deliveries in China totaled just 9,400 units, a sharp decline of approximately 63.8% year-on-year. The North American market also recorded a 13.3% decline. By contrast, Western Europe, Central and Eastern Europe, and South America posted growth of 4.2%, 7.6%, and 7.0%, respectively, though their scale was insufficient to offset declines in China and North America. In response to challenges in China, Volkswagen is accelerating its “In China, for China” localization strategy, shifting more product definition, R&D, and supply chain activities to the domestic market. At the 2026 Beijing Auto Show, Volkswagen showcased multiple new energy vehicles. UNYX 08 displayed at Beijing Auto Show Volkswagen Anhui unveiled the UNYX 07 globally, while the Gold Badge Volkswagen brand presented its flagship SUV UNYX 08 alongside the updated 2026 UNYX 06. Meanwhile, FAW-Volkswagen debuted the mid-size electric SUV ID. AURA T6 globally, and SAIC Volkswagen introduced the large electric SUV ID. ERA 9X. Looking ahead, Volkswagen is accelerating its NEV rollout in China. The company plans to launch 13 new energy models in 2026 and more than 30 cumulatively by 2029, covering battery electric, plug-in hybrid, and range-extended powertrains.