Volkswagen Group profit slump and Skoda sales rise in H1 2026

Volkswagen reported a sharp decline in earnings for the first half of 2026. Net profit fell around 30 % to €3.1 billion, while operating profit dropped between 11 % and 36 % across various reports. The loss was driven by weaker demand in China, tariff pressures and intense competition, prompting a restructuring plan that includes up to 100 000 job cuts and threatens about 20 000 positions in European operations.

In contrast, Skoda Auto posted growth. The Czech‑based brand delivered 555 700 vehicles in the first half, a 9.1 % increase over the prior year, and its operating profit rose about 6 % to €1.37 billion. Sales of electric and plug‑in‑hybrid models accounted for more than a quarter of deliveries, with the Enyaq and El‑Roq leading the EV segment. Skoda also celebrated production milestones, such as the millionth Karoq and a record output of 609 300 cars.

The contrasting performance highlights the divergent fortunes within the Volkswagen Group: Skoda’s strong sales and profitability versus the broader group’s earnings pressure and costly restructuring amid a challenging global automotive market.