Volkswagen Forecasts EV Profits to Surpass ICE Vehicles After 2030

Volkswagen Group CFO Arno Antlitz stated during a recent earnings call that the profit margins of electric vehicles (EVs) are currently significantly lower than those of internal combustion engine (ICE) vehicles. He emphasized that EV profitability is unlikely to truly catch up with—or even surpass—that of ICE vehicles until the next-generation Scalable Systems Platform (SSP) enters production. Antlitz noted that until this critical platform transition is complete, Volkswagen’s EV margins will remain incomparable to those of its conventional vehicles. The SSP (Scalable Systems Platform) is Volkswagen’s upcoming all-new EV architecture, designed to replace the current MEB and PPE platforms. By standardizing vehicle architecture, achieving high parts commonality, and enabling economies of scale, the SSP is expected to reduce production costs by approximately 20% compared to the MEB platform. Originally slated for debut this year, the SSP’s launch has now been postponed to before 2030. In the interim, Volkswagen plans to rely on high-margin ICE models to fund its operations while tightly managing R&D and manufacturing costs for EVs. The company also aims to diversify revenue streams through software subscription services and premium EV offerings. Antlitz added that Volkswagen has already made progress in improving EV profitability—for instance, updated MEB Plus platform vehicles now feature lower-cost lithium iron phosphate (LFP) batteries and cell-to-pack battery designs, helping the company gradually meet European CO₂ emission targets without compromising margins.