Volkswagen sold 2.3 million fewer cars in 2021, still managed to make more money

Volkswagen Group produced and sold at least 2.3 million fewer vehicles last year, due to the crippling effects of the semiconductor crisis, the German automaker has admitted. The multi-brand automobile group that owners Volkswagen Audi, Skoda, Porsche among others sold 8.6 million vehicles in 2021, which was 6.3 per cent down compared to its sales number registered in 2020.

The automaker claims that the semiconductor crisis hit it harder than the Covid-19 pandemic. The Coronavirus pandemic caused a 2.3 per cent slump in sales of the automaker in 2020, as compared to its 2019 sales. However, the 2022 number went even down due to the hammering it faced due to chip shortage that impacted the global auto industry.

Volkswagen is expecting the supply chain woe to continue further due to the ongoing conflict between Russia and Ukraine. The conflict has already created pressure in the automotive supply chain, as several key raw materials and parts are not being available.

Meanwhile, what's interesting is that despite the massive fall in sales numbers, Volkswagen was able to fetch more revenue last year compared to 2020. The automaker claimed that its revenue in 2021 was $275.6 billion, while operating profit jumped to $21.2 billion, pushing overall earnings before tax up almost 73 per cent to $22.1 billion.

The automaker claims that this surge in revenue was because of the higher transaction prices and a better product strategy. Volkswagen Group claims that this financial feat is attributed to the launch of electric vehicles, which have been witnessing surging demand.

In the EV space, despite being outplayed by Tesla in the US market, Volkswagen Group performed well in Europe, where it held a 25 per cent market share. The electric vehicles witnessed their sales almost doubling to 452,900 units in 2021, which is likely to take a significant leap in 2022.