During Volkswagen's earnings call, the company revealed that the profit margins for electric vehicles (EVs) are presently considerably lower than those for fuel-powered vehicles. It is projected that the profit margins for both types of vehicles will only start to converge by 2030, with complete alignment anticipated only after the introduction of the next-generation SSP platform. The launch of the SSP platform, initially scheduled for this year, has been delayed until the end of this decade. This delay is aimed at achieving a 20% reduction in production costs compared to the MEB platform. Models built on the enhanced MEB Plus platform, such as the ID.2 Cross, exhibit a reduced impact on profit margin dilution, achieving profit margins that are 70% to 80% of those for corresponding fuel vehicle models. The CEO of Volkswagen Group has set a goal to elevate the overall profit margin to a range of 8% to 10% by 2030. However, the group is currently grappling with the challenge of declining market sales, with an anticipated operating profit margin of 4% to 5.5% in 2026, which is still higher than that in 2025. Most Western automakers are focusing on launching high-priced electric vehicle models while simultaneously boosting revenue through software and subscription services, with the overarching objective remaining the development of efficient and intelligent electric vehicles.
