Volkswagen Sales Drop But Demand For EVs Jumps

Volkswagen delivered round 5.3 million automobiles to clients world wide in 2020, which represents a 15% drop in comparison with the earlier 12 months, largely attributable to the coronavirus pandemic.

December introduced some much-needed aid, with gross sales coming in simply 2% decrease than the identical interval final 12 months. Volkswagen (0P6O) was capable of preserve its international market share and even increase in a number of areas, in accordance Klaus Zellmer, the board member accountable for Gross sales of Volkswagen Passenger Vehicles.

Volkswagen mentioned that demand for its electrical fashions jumped 158% for the 12 months as the corporate delivered 212,000 electrical automobiles, together with round 134,000 battery electrical automobiles (BEV). The share of EVs and hybrid automobiles grew to 12.4% of Volkswagen’s whole deliveries in Europe, in comparison with simply 2.3% the 12 months earlier than.

“2020 was a turning level for Volkswagen and marked a breakthrough in electrical mobility,” mentioned Ralf Brandstätter, CEO of Volkswagen Passenger Vehicles. He added that Volkswagen stands for “engaging and inexpensive e-mobility,” extra so than any of its opponents. (See Volkswagen stock analysis on TipRanks)

Goldman Sachs analyst George Galliers reiterated his Purchase ranking on Volkswagen final week and set his worth goal at €189. This means upside potential of round 31% from present ranges.

Commenting on the construction of the Volkswagen board, Galliers believes that the separation of the board capabilities of buying and parts will permit the brand new head of procurement to give attention to lowering materials prices by 7% within the subsequent two years.

Consensus amongst analysts is a Average Purchase primarily based on 11 Buys, 4 Holds and 1 Promote. The common price target of €177.07 suggests upside potential of round 22% over the following 12 months.

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