Volkswagen Group Mobility reports growth in H1 2024

Volkswagen Group Mobility has concluded the first half of the current fiscal year with robust growth in new contracts and an expanding contract portfolio.

The number of new contracts rose by 12.0 percent to just under 5.1 million units compared to the same period last year, with leasing recording significant gains.

The contract portfolio grew by 2.3 percent to almost 26 million units. The operating profit stands at €1.37 billion, which corresponds to a decrease of 21.7 percent compared to the first six months of 2023. The main reason for this decline is the deconsolidation of the Russian business.

“Although we are operating in a challenging market environment in 2024, we were able to record significant growth in new contracts and in our contract portfolio during the first half of the year. The leasing and insurance product groups stand out in particular. The figures show that our customers are convinced by the quality of our mobility and service offerings, and we can continue to systematically pursue our growth path.”

“The half-year operating profit is influenced, among other factors, by our already terminated business activities in Russia. Although our investments there were already completely written off in 2023, currency translation differences, i.e. exchange-rate losses on the historical equity, have now been recognised in income in the first half of 2024 due to the deconsolidation. In addition, risk costs have increased due to a higher contract volume.

“Nevertheless, we are sticking to our forecast for the current fiscal year and are still anticipating an operating profit slightly above the previous year – not least because the second half of the year is expected to be stronger.”

Volkswagen Group Mobility is a business division of the Volkswagen AG group of companies and comprises Volkswagen Financial Services AG along with its subsidiaries and affiliates (e.g. Volkswagen Bank GmbH and Volkswagen Leasing GmbH), Volkswagen Financial Services Overseas AG, Porsche Financial Services GmbH, Volkswagen Credit Inc. (USA), and Volkswagen Credit Canada Inc. – with the exception of TRATON Financial Services and Porsche Holding Salzburg.

The key business fields embrace dealer and customer financing, leasing, bank and insurance activities, fleet management, and mobility services. The companies of Volkswagen Group Mobility have a total of 18,171 employees worldwide – including 7,691 alone in Germany.

Deposit volume of Volkswagen Bank continues to expand
In order to achieve the growth targets of Volkswagen Group Mobility, particularly in Europe, Volkswagen Bank and its refinancing instruments play a significant role. Since the structural reorganisation in the middle of this year, the important deposit business can be effectively used for refinancing the leasing business and growing total assets. After an increase in the deposit volume of €12 billion throughout 2023, around €15 billion in new customer deposits were generated at Volkswagen Bank in the first six months of the current year alone. As at 30th June 2024, the deposit volume amounted to around €52 billion.

Used car figures and penetration rates consistently positive
The global used car business also showed a consistently positive development. New contracts were up 10.7 percent to 501,000 units (previous year: 453,000 units). The portfolio grew slightly by 1.75 percent from 2.6 million to 2.7 million units. Penetration rates (the percentage of all new Volkswagen Group vehicles financed and leased through Volkswagen Group Mobility) increased to around 50 percent (excluding China) – a rise of more than 3 percent compared to the same period last year. In Germany, the penetration rate even reached 66 percent (+5.5 percent).

The total assets of the Volkswagen Group Mobility companies have grown to €285.3 billion as at 30th June 2024 (+11.9 percent).

Portfolio of current contracts worldwide (in thousands of units*)	31 December 2024	31 December 2023	Change in %
Financing	5,122	5,419	– 5.5
Leasing	5,042	4,799	+ 5.1
Services	5,956	5,651	+ 5.4
Insurance	9,732	9,412	+ 3.4
Total	25,852	25,281	+ 2.3

New contracts worldwide (in thousands of units*)	January to December 2024	January to December 2023	Change in %
Financing	852	907	– 6.0
Leasing	1,069	928	+ 15.2
Services	1,138	1,064	+ 7.0
Insurance	2,036	1,650	+ 23.3
Total	5,095	4,550	+12.0
* Figures rounded

“This shows that our financial and mobility services are an important sales instrument for the Volkswagen Group brands in non-European markets as well.”