In key German stock news, Volkswagen AG (FROM: WISH) released its shipments data for the first quarter, with growth driven by China while Europe lagged behind in terms of performance. Total deliveries for the quarter jumped 3% year-on-year to 2.10 million vehicles, with China and South America recording growth rates of 8% and 14%, respectively. In China, fully electric models have seen notable growth, with a remarkable 91% increase to 41,000 units. Conversely, European markets showed weakness, with total deliveries down 0.3% and electric vehicle (EV) sales down 24% in the region.
Volkswagen shares were down 0.41% on Wednesday. Since the start of the year, VOW stock has gained 24%.
Volkswagen (VW) is a luxury car manufacturer that has brands such as Volkswagen, Skoda, Audi, Bentley, Ducati, Lamborghini and others in its portfolio.
VW’s EV sales in China shine, Europe disappoints
Volkswagen’s remarkable growth in China has been mainly fueled by falling prices. In a country characterized by intense competition and price war, Volkswagen has managed to maintain its market share and grow thanks to its sustainable pricing model.
Volkswagen faces strong competition in China from local rivals, such as BYD Co. Limited (Hong Kong: 1211) and American giants like Tesla (NASDAQ:TSLA). According to China Passenger Car Association (CPCA), BYD secured the top spot as China’s best-selling electric vehicle brand in March, displacing Tesla.
For Volkswagen, the backdrop in Europe has been less positive, as the country has seen a notable decline in electric vehicle sales due to reduced demand in the region. In Germany, the company’s home market, demand for electric vehicles has been hit by reduced government subsidies and a review of its ambitious electrification targets.
Looking ahead, VW is optimistic about the high number of orders for its electric models in Europe. In the first quarter, the company’s battery electric vehicle (BEV) orders more than doubled compared to the same period last year, increasing 154%. BEV’s order book currently stands at around 160,000 vehicles.
Is Volkswagen a good stock to buy?
According to TipRanks consensus, VOW stock received a Moderate Buy rating based on recommendations from 10 analysts. This includes five Buy, three Hold, and two Sell recommendations. The Volkswagen stock price prediction is €131.56, which is 10.6% below the current price level.
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