Orders received by the Volkswagen Group
ORDERS RECEIVED IN THE PASSENGER CARS SEGMENT IN WESTERN EUROPE
Orders received in Western Europe in the reporting year were down 15.7% on the 2022 level. Demand for models with combustion engine or plug-in hybrid drivetrains performed somewhat better by comparison – in some markets such as the United Kingdom and Spain, orders increased year-on-year. For battery-electric vehicles by contrast, there was a stronger decrease in orders for battery-electric vehicles than in the prior year. The buyer reluctance seen across the industry, partly due to worsening underlying economic conditions and the expiry of state subsidies, contributed to lower demand in key markets.
ORDERS RECEIVED FOR COMMERCIAL VEHICLES
Orders received for mid-sized and heavy trucks, for buses and for commercial vehicles from the MAN TGE van series declined by 21% year-on-year to 264,798 vehicles in 2023. Prevailing uncertainty about economic development and more difficult financing conditions led to a normalization of demand, particularly in Europe. In North America, incoming orders were down sharply on the previous year, due mainly to continuing restrictive order acceptance caused by the very high order backlog. Incoming orders in South America were strongly below the prior-year figure as a result of pull-forward effects in connection with the introduction of a new emissions standard in Brazil at the beginning of 2023. The MAN TGE van series segment likewise recorded a significant downturn.
Order intake in the bus business recorded a noticeable decrease year-on-year. A noticeably higher order intake was recorded in the EU27+3 region. This is attributable, among other things, to the continued slow recovery in the coach market. In contrast, incoming orders in South America were sharply below the previous year’s figures.
ORDERS RECEIVED IN THE POWER ENGINEERING SEGMENT
The long-term performance of the Power Engineering business is determined by the macroeconomic environment. Individual major orders lead to fluctuations in incoming orders during the year that do not correlate with these long-term trends.
Orders received in the Power Engineering segment in 2023 amounted to €5.0 (4.3) billion. Engines & Marine Systems and Turbomachinery generated more than three quarters of the order volume in a persistently difficult market environment.
In the marine business, for example, twelve 32/44CR engines and twenty-four 175D engines were ordered for six ships in 2023. In the power plant business, orders were secured for 81 engines and component sets for 22 completely knocked down engines of different types with an aggregate output of 1,409 MW. For turbomachinery, we received several orders for new applications which were driven by the energy transition and decarbonization such as carbon capture and storage in the Netherlands and a large-scale heat pump for Denmark. A further order was also placed for compression of hydrogen from electrolysis installations for use in industrial processes. We also recorded successes for remote-controlled machinery trains in the North Sea equipped with digital packages and a major order for eleven compressors on a floating oil and gas production facility.