Volkswagen Group admits openly that it earns less money from electric cars than from gasoline cars.

02/11/2026 07:00

Updated to

02/11/2026 07:00

Volkswagen ended the third quarter of 2026 with operating losses of 5.860 million euros, facing an increasingly apparent contradiction in its strategy: its electric cars attract buyers, but they still yield lower profits than gasoline-powered vehicles. This was acknowledged by Arno Antlitz, the group’s CFO, during the quarterly results presentation. Electric cars now account for 40% of its order portfolio in Europe, with the new urban model line receiving around 150,000 orders. The challenge lies in turning this commercial success into profitability.

Massive losses, but not solely due to electric cars

The group’s revenue dropped by 6.3% from July to September, to 75.277 million euros. The operating result was negative at 5.860 million, compared to losses of 1.299 million during the same period in 2025.

However, attributing all of that figure to electrification would be incorrect. Volkswagen recorded around 7.800 million euros in one-time items during the quarter.

Among the main adjustments for the first nine months are 6.400 billion due to accounting impairments related to Porsche and around 1.000 billion for assets of consolidated companies in China. These are charges that affect the accounts, but they do not equate to direct money lost from car sales.

Volkswagen sells electric cars, but makes less profit from them

Antlitz pointed out another issue. “The commercial success of our electric vehicles puts additional pressure on our results, because we currently make less profit from them than from combustion engines,” he admitted.

In the first nine months, orders for electric vehicles in Europe rose by 39%. By the end of September, they accounted for about 40% of Europe’s total vehicle portfolio of 1.1 million units. The group acknowledges that selling more electric vehicles does not guarantee improved profits if its margins remain low.

Excluding one-time effects, Volkswagen achieved an operating result of 8.8 billion in the first nine months, with a profit margin of 3.8% on sales. According to Antlitz, this figure is insufficient to sustain the manufacturer’s investment efforts.

Martorell and Navarra, key to the next challenge

This contrast is directly linked to Spain. The approximately 150,000 orders pertain to the CUPRA Raval, Volkswagen ID. Polo, Škoda Epiq, and Volkswagen ID. Cross combined.

The first two models are manufactured in Martorell, while the other two come from Volkswagen Navarra’s plant in Pamplona. They share a technological platform designed to reduce costs and make electric cars more affordable.

Volkswagen aims to address pressure on its profit margins by simplifying models, achieving cost savings through industrial efficiency, and accelerating technological development, as part of a cost reduction program worth around 31 billion euros.

The Spanish operation must prove more than just its ability to secure orders: that producing affordable electric cars in large volumes can also become a profitable business for the group.