Volkswagen Expects After-Sales Business to Grow Despite Rising EV Share
September 02 2019 - 9:59AM
Dow Jones News
By Max Bernhard
Volkswagen AG (VOW.XE) expects profit and sales in its
after-sales business to grow over the next years, despite
forecasting an impact from the rising share of electric vehicles,
which require less maintenance.
"The growing number of electric vehicles with maintenance costs
that are about 20% to 30% lower than conventional vehicles will
have an impact on after-sales business in the future. Nevertheless,
the group plans to considerably boost sales and profit from after
sales over the next few years," the German car maker said
Monday.
Volkswagen expects the business to receive a boost from digital
services for clients, increased efficiency through digitalization
and growth in its overall vehicle fleet. The company expects the
number of vehicles that receive support to grow to 150 million from
100 million by 2030.
It forecasts that by that time, the share of electric cars in
its fleet will reach between 10% and 15%.
"Conventional vehicles with higher maintenance potential will
therefore still continue to account for a significant share of the
vehicle fleet over the years to come," it said.
Write to Max Bernhard at max.bernhard@dowjones.com
(END) Dow Jones Newswires
September 02, 2019 09:44 ET (13:44 GMT)
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