The Volkswagen Group's 2025 first-quarter financial report unveiled a significant decline of 40.6% in after-tax profit, amounting to €2.18 billion (approximately RMB 17.934 billion). This drop occurred despite a strong surge in electric vehicle (EV) sales. The primary reason behind this paradox lies in the lower profit margins associated with EVs. Despite the surging demand for battery-electric vehicles, their manufacturing costs remain higher than those of internal combustion engine vehicles. Moreover, market competition has kept prices suppressed, preventing the growth in EV sales from effectively translating into profit growth. Additionally, the full synergistic effects of the supply chain have yet to be realized, and fixed costs are challenging to amortize, further squeezing profit margins. Furthermore, stricter EU carbon emission regulations and ongoing expenses tied to the "Dieselgate" litigation have also contributed to the erosion of profits.