The German automaker said it expects challenges due to political uncertainty, expanding trade restrictions and geopolitical tensions.

Even though individual models like the Audi Q6 e-tron have seen sales growth, the lower profit margins on EVs ultimately drags down the company’s overall earnings. Due to its performance in Q2, the VW Group now anticipates its sales revenue for 2025 to match last year’s performance. Previously, the company expected an increase of 5%.

Volkswagen cut its 2025 financial outlook after $1.5 billion in US tariff costs and restructuring charges hit first-half earnings, with operating profit and revenue falling below expectations.