Volkswagen's profit plunged by almost 64% due to lower demand in China

By Alimat Aliyeva

German car giant Volkswagen has reported a sharp drop in profits in the third quarter of 2024, Azernews reports.

The company's net profit decreased by 63.7% compared to the same period last year and amounted to only 1.576 billion euros.
The main reasons for such a significant decline in VW's financial performance are high costs and weakening demand in the key market - China.

Volkswagen chief Financial Officer Arno Antlitz said the current situation demonstrates the urgent need for "significant cost reductions and efficiency improvements."

The company has previously lowered its annual forecast twice in recent months. VW now expects sales to fall by the end of the year and profitability to decrease to 5.6%.