Operating profit was up by 13% to €13.9 billion while the operating margin was 8.9%, above the guidance range of 7.5% to 8.5%.

The group noted that its results were driven by a continued recovery in volume as well as solid mix and pricing. Vehicle deliveries were down by 1% in China to 1,451,900, but Volkswagen reported signs of recovery towards the end of the reporting period.

The group’s electrification strategy continues, with battery electric vehicles representing 7.4% of total deliveries in the first half of the year, up from 5.6% in the first half of 2022.

Volkswagen’s Core brand group achieved a sales revenue increase of 30% in the half, while operating profit was strongly increased to €3.8 billion with a margin of 5.5%. Meanwhile, the Progressive brand group had an operating margin of 10% with operating profit heavily impacted by valuation effects mainly from commodity hedging outside hedge accounting.

The Sport Luxury brand group had an operating margin of 19.3% thanks to an increase in deliveries of 15%, while the operating result was up by 11% to €3.9 billion. The Trucks brand group had a sales revenue increase of 27% while operating profit was €1.8 million with a margin of 8.1%.

Looking forward to the full 2023 fiscal year, Volkswagen Group expects deliveries to come in between 9-9.5 million units.

Oliver Blume, CEO of Volkswagen Group, said: “We have strategically realigned and restructured the Volkswagen Group, with a clear plan and measurable milestones. In the first half of the year, the Volkswagen Group delivered reliably with very solid results.

“Sales in North America are picking up, we are strengthening our position in China through technological partnerships and on top of that the trend for fully electric vehicles is moving in the right direction. What is important to us is long-term, sustainable growth, with a focus on value over volume.”