Volkswagen Group stunned markets with a 40% surge in Q1 operating profit to €7.6 billion, crushing analyst estimates of €6.2 billion, as its aggressive electrification strategy finally bears fruit. The German automaker now leads Europe’s EV transition with 21% market share.

Key Highlights:

• EV Breakthrough: Battery-electric vehicle sales up 78% to 310,000 units

• Margin Expansion: Automotive gross margin hits 9.8% (up from 7.3%)

• China Turnaround: Deliveries rebound 32% after local JV restructuring

Model Performance:

1. ID.3: Europe’s best-selling EV (82,000 units)

2. ID.4: US sales triple after Tennessee production starts

3. Audi Q6 e-tron: 58,000 pre-orders in first month

Strategic Wins:

• Opened gigafactory in Salzgitter (40GWh capacity)

• Launched unified “Scalable Systems Platform”

• Secured 85% of 2026 lithium supply

Market Reaction:
Shares surged 11% in Frankfurt – the biggest gain since 2020.