Volkswagen Group Mobility half-year profit climbs 31.9%

Volkswagen Group Mobility has reported a sharp rise in earnings and contract volumes for the first half of 2025, maintaining its growth trajectory despite what it described as a challenging global economic backdrop.

The business division posted an operating result of €1.8 billion for the six months to June 30, up 31.9% on the same period last year. The prior-year result had been weighed down by currency effects linked to the exit from Russian operations.

New contracts rose 5.3% year-on-year to 5.37 million units, while the global contract portfolio increased 9.7% to 28.35 million units. The strongest growth came in insurance contracts, up 19% to 11.58 million, followed by leasing, up 10.2% to 5.55 million. Financing contracts fell 7% to 4.77 million.

Electric vehicle financing also showed strong momentum. Contracts for battery electric vehicles (BEVs) jumped 72.1% from 141,933 to 244,245 units.

Volkswagen Bank’s deposit base reached a record €63.6 billion, up €8.6 billion or 15.6% since the start of the year, bolstering refinancing capabilities.

Outside Europe, Volkswagen Financial Services Overseas AG saw strong gains, particularly in South America, where Brazil and Argentina recorded above-average growth in service and insurance products.

CEO Dr. Christian Dahlheim noted: “We have continued our growth trajectory based on our Life Cycle Offers strategy together with the Volkswagen Group brands in the second quarter of 2025.

“Our core business continues to develop positively, as evidenced by the growth in new contracts and the contract portfolio in recent months. Particularly dynamic and sustainable growth can be seen in the business segments of leasing, insurance, and services. Worldwide, new contracts for BEVs rose by 72.1 percent to 244,245 units, underlining our important role within the Volkswagen Group in driving the market ramp-up of electric mobility.”

“The strong half-year result from Volkswagen Group Mobility is once again clear evidence that we are on track to achieve our ambitious targets for 2025, despite the continuing volatility of the geopolitical and economic circumstances,” said Dr. Ingrun-Ulla Bartölke, CFO of Volkswagen Financial Services AG.

“Key drivers of this result include in particular the growth in the contract portfolio and the improving margin quality. We are therefore confirming our full-year forecast and continue to expect an Operating Result for 2025 that will be significantly higher than in the previous year. In addition, deposit levels at Volkswagen Bank – increasingly important for our refinancing – have risen to a record high.”

Kai Vogler, CFO of Volkswagen Financial Services Overseas AG, commented: “We are very satisfied with the business performance in the markets served by Volkswagen Financial Services Overseas during the first half of the year.

“We recorded very positive developments across all relevant metrics, particularly in terms of volume, such as an almost 32 percent increase in the global insurance and service business. Especially noteworthy is the ongoing positive momentum in South America, where growth in Brazil and Argentina was markedly above average. The basis for this growth continues to be our excellent collaboration with the Volkswagen Group brands and the consistent implementation of our strategy.”

The company reaffirmed its forecast for the year, expecting an operating result “significantly above” the 2024 level.