The Volkswagen Group launched its first-half (H1) 2023 outcomes Thursday, displaying a 48% rise in electrical car deliveries. Regardless of expectations for a better proportion of EV gross sales within the second half of the yr, Volkswagen has lowered its total supply steerage, citing logistics bottlenecks.

Volkswagen EV deliveries up H1 2023

Between the Volkswagen Group umbrella of manufacturers that features VW, Audi, Skoda, Cupra, Porsche, and extra, the auto manufacturing big delivered roughly 322K EVs within the first half of the yr, up 48% year-over-year (YOY).

EVs accounted for 7.4% of complete Volkswagen deliveries, in comparison with 5.6% in H1 2022. This contains 18% YOY (91% QoQ) progress in China, a market VW has struggled in with low-cost, home EVs.

The expansion comes after CEO of Volkswagen Passenger Automobiles, Thomas Shafer, informed high staff earlier this month, “The roof is on hearth. That is the ultimate wake-up name,” in response to quotes from German media outlet Supervisor Magazin.

The Volkswagen Group generates round 40% of its income from China, which is why the automaker is making it a high precedence.

Volkswagen, identified for being a market chief in China, fell behind China’s BYD in passenger automotive gross sales within the first half of the yr as home EV makers proceed grabbing a much bigger market share.

To spice up gross sales, the Volkswagen Group has partnered with a number of EV makers in China lately. Audi confirmed it was teaming up with SAIC Motors final week to develop new EVs within the area.

Extra lately, VW invested $700M for a roughly 5% stake in XPeng Motors. VW plans to launch two fashions by way of the strategic partnership, beginning in early 2026, whereas leveraging its tech platform, connectivity, and ADAS software program.

Wanting forward, Volkswagen expects a better proportion of BEV gross sales within the second half of the yr attributable to “seasonal results” and “considerably lowered supply instances.” VW goals for EVs to account for 8% to 10% of its complete supply share for the yr.

In the meantime, Volkswagen is decreasing total supply steerage by round 500K items for the yr. The automaker mentioned pressures have shifted from semiconductor shortages to transportation and logistics delays.

The second half of the yr ought to see decrease materials prices and step by step easing logistics bottlenecks, in response to VW. Regardless of decrease supply expectations, VW confirmed its monetary outlook for the yr.