Volkswagen Group Mobility reports €948m operating result in Q1

Volkswagen Group Mobility has made an impressive start to the 2025 financial year, posting robust results across its global operations. The division reported an operating result of €948 million for the first quarter, marking a significant 20.6 percent increase compared to the same period in 2024.

New contracts surged by 4.6 percent, reaching a total of approximately 2.5 million units between January and March. The division’s portfolio of current contracts also edged up slightly by 0.4 percent, now totalling 26.8 million active agreements worldwide. Of particular note was the rapid growth in contracts for fully electric vehicles (BEVs), which soared by 62.3 percent globally, from 72,120 to 117,105 units, driven by increasing consumer interest and the Volkswagen Group’s continued emphasis on electric mobility. Europe led this trend, recording a striking 75.9 percent jump in BEV contracts.

Volkswagen Financial Services AG CEO Dr. Christian Dahlheim noted: “We continue to grow in our core business – that’s the key takeaway from the first three months of fiscal 2025.

“Particularly pleasing is the growth in new contracts of almost five percent, driven by the dynamic leasing, insurance and service business. Among these acquisitions, new BEV contracts were up 62.3 percent worldwide and as much as 75.9 percent in Europe. This highlights our important role in the Volkswagen Group’s market ramp-up of electric mobility. Our penetration rates are also on the rise, notably in the major European markets including Germany.”

Volkswagen Bank, a cornerstone in the group’s financial infrastructure, also saw its deposit base expand significantly. Since the start of the year, deposits have risen by nearly €3 billion, bringing the total to around €58 billion. This growth not only underscores customer confidence but also strengthens the division’s refinancing capabilities.

International operations under Volkswagen Financial Services Overseas AG played a vital role in the quarter’s success. The division experienced meaningful growth across new contracts, current contracts, and penetration rates, particularly in South America. Markets such as Mexico and Brazil delivered strong results, aided by strategic partnerships and enhanced offerings in the fleet, insurance, and service sectors. The overall global penetration rate (excluding China) rose by 1.1 percentage points to 37.2 percent.

In terms of product categories, leasing, services, and insurance all recorded solid growth. Leasing contracts rose by 6 percent, services by 6.1 percent, and insurance contracts by 6 percent as well. Financing contracts, however, saw a modest decline of 1.4 percent year-over-year.

Dr. Ingrun-Ulla Bartölke, CFO of the company, commented: “With quarterly earnings of €948 million, we are very satisfied – considering the difficult and demanding economic and geopolitical circumstances – and we can confirm our forecast for the current financial year.

“The first three months were characterised, among other things, by good performance in our European business as well as a growing portfolio with a positive development of the portfolio margin.”

Meanwhile, Kai Vogler, CEO of Volkswagen Financial Services Overseas AG, emphasized the critical role of the South American markets and praised the operational success driven by brand collaboration and strategic partnerships:

“Business development in the markets served by Volkswagen Financial Services Overseas was very positive during the first quarter. The South American market is a key driver of this growth. We were able to achieve a plus of 19.1 percent in new contracts for new and used vehicles and in the multi-brand business. In the insurance and service business, there was a rise of no less than 38 percent. Our global penetration rate – excluding China – went up 1.1 percentage points to what is now 37.2 percent, with Mexico alone increasing by 3.6 percentage points. The reasons for our good performance are the excellent collaboration with the Volkswagen Group brands and our successful strategic partnerships, such as the one in Brazil in the fleet business.”