Volkswagen's profit plunges by almost 64% due to declining demand in China

German auto giant Volkswagen saw a sharp drop in profits in the third quarter of 2024, Report informs via Zeit.

The company's net profit decreased by 63.7% compared to the same period last year, amounting to only 1.576 billion euros.

VW cites high costs and weakening demand in its key market - China - as the main reasons for such a significant decline in financial performance.

Volkswagen's Chief Financial Officer Arno Antlitz stated that the current situation demonstrates an urgent need for "substantial cost reduction and efficiency improvements."

The company had already lowered its annual forecast twice in recent months. Now VW expects a decline in sales by the end of the year and a decrease in profitability to 5.6%.