Volkswagen announced a strong sales forecast for 2023, anticipating revenue between 307 billion euros ($326 billion) and 331 billion euros ($352 billion).
The news comes nearly a month after the German automaker posted its full year financial results for 2022, which revealed a better-than-expected earnings margin of 8.1%, and two months after the release of the brand’s annual sales numbers, which dropped to the lowest in a decade. These conflicting statistics originally concerned company executives, who feared the logistical and economical conditions hampering the industry in 2022 would continue into the new year. With the arrival of its new sales forecast, however, these worries seem to have dissolved.
Volkswagen now expects to see revenue increase 10% to 15% year-over-year, with deliveries increasing 14% to 9.5 million units. This optimistic sales forecast caused shares to rise 10.6%, their highest since last November. The change in attitude is likely due to the car market’s unseasonably strong performance in January and February, which for some automakers, such as Hyundai, were record breaking in terms of sales. The annual reports of other global companies, such as Stellantis and Honda, may have also played a role in this shift, since both reported substantial growth in 2022 despite the logistical issues faced by the industry.
Other brands, however, such as Ford and Toyota, are likely to retain a more cautious stance for the foreseeable future. Both companies lost ground in 2022 due to supply chain disruptions, and have subsequently announced recovery-focused strategies. Of the two, Toyota has the more precarious position on the global stage, with its title as the world’s best-selling automaker being hungrily watched by the confidence-boosted Volkswagen, who has been stuck in the runner-up position for three years.