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

Volkswagen claims that it recorded revenue growth because of the higher transaction prices and a better product strategy.
By : HT Auto Desk
| Updated on: 15 Mar 2022, 07:54 PM
Volkswagen attributes its electric vehicles behind the revenue surge in 2021.
Volkswagen attributes its electric vehicles behind the revenue surge in 2021.
Volkswagen attributes its electric vehicles behind the revenue surge in 2021.
Volkswagen attributes its electric vehicles behind the revenue surge in 2021.

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.

Similar Cars

Find More Cars
Volkswagen Polo (HT Auto photo)
Volkswagen Polo
999 cc | Petrol | Manual | 17.74 kmpl
₹5.83Lakhs*Onwards
Volkswagen Virtus (HT Auto photo)
UPCOMING
Volkswagen Virtus
1984 cc | Petrol | Manual
₹ 9 to 12 Lakhs Expected Price*
Volkswagen Vento (HT Auto photo)
Volkswagen Vento
999 cc | Petrol | Manual | 17.69 kmpl
₹10Lakhs*Onwards
Volkswagen Taigun (HT Auto photo)
Volkswagen Taigun
999 cc | Petrol | Manual | 18.1 kmpl
₹10.49Lakhs*Onwards
Volkswagen T-roc (HT Auto photo)
Volkswagen T-roc
1498 cc | Petrol | Automatic (Dual Clutch) | 17.85 kmpl
₹21.35Lakhs*Onwards

(Also read: Volkswagen, Toyota production hits snag due to Covid curbs in China)

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.

First Published Date: 15 Mar 2022, 07:53 PM IST
Recommended For You
View All
NEXT ARTICLE BEGINS

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city
By clicking VIEW OFFERS you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city