Volkswagen sales in China and changes in profit in the last four years

As the world's largest auto market, the Chinese market has long been a major market for international giants to compete, and it has also become the main source of their profits. With the rapid and rapid rise of car sales, the importance of the Chinese market to international giants is also increasingly prominent. Among the international giant auto companies, the situation with the Volkswagen Group is more pronounced.

Sales volume: total sales continue to climb the Chinese market significantly

In terms of sales volume, Volkswagen Group’s global sales have continued to climb in recent years. According to Gasgoo.com's data, by 2013, Volkswagen's global sales amounted to 9,728,300, compared with 7,278,400 in 2010, and the cumulative sales increased by 33.7% during the three years. For this year, the Volkswagen Group expects annual sales to exceed 10 million units. In the six months that have passed, its performance has also been very good. It has increased by 6.9% to 5.207 million vehicles, and its mission has exceeded half.

Volkswagen's business sales in China have played a significant role in boosting sales. In recent years, the growth rate has exceeded the group's total sales growth rate, and the contribution rate of sales in the Chinese market has also increased year by year. In 2010, Volkswagen's sales in China (herein referred to the total sales volume of Volkswagen's two joint ventures in China) were 1.871 million, which accounted for 25.7% of the Volkswagen Group's global sales. In the following three years, sales of Volkswagen China business maintained double-digit growth. By 2013, Volkswagen’s sales in China had increased by 62.4% to 3.038 million units, and the contribution rate had climbed to 31.2%. In the first half of this year, the contribution of sales volume in the Chinese market rose again to 35.5%, and the sales volume increased from 1.517 million units to 1.847 million units, a year-on-year increase of 21.8%, which was far higher than the 6.9% growth of the Volkswagen Global.

Operating profit: China's business growth and total operating profit ratio exceeds 40%

With the ever-increasing sales volume, Volkswagen’s operating profit has also been increasing for the past four years, but the increase is not significant. In 2010-2013, except for 2010, the overall operating profit of the Volkswagen Group was only slightly higher than 3% in the remaining years and reached 11.671 billion euros in 2013. In the first half of this year, the VW Group’s operating profit also increased by only 7.0% to 6.186 billion euros.

The profit of the Volkswagen China business increased significantly, and its ratio with the total public revenue rose sharply. Although VW’s operating profit in China’s business is not directly included in global profits due to its share-to-share ratio, it can be used as a reference value under the equity method. According to the data calculated by the equity method, the profit of the Volkswagen China business continued to grow rapidly. In 2010, Volkswagen’s China business operating profit was 1.907 billion yuan, and it climbed to 4.966 billion yuan in 2013, more than doubling year-on-year. The ratio of this value to the total public operating profit (not a percentage, because the report was not included in China Business profit) up to 36.8%. In the first half of this year, the ratio climbed to 42.4% and operating profit reached 2.622 billion euros, a year-on-year increase of 10.6%.