Should I buy Volkswagen stock in 2025?

What is Volkswagen?

How much is the Volkswagen stock?

The price of Volkswagen stock is falling this week. As of today, Volkswagen trades at €95.82, reflecting a 0.75% decrease in the last 24 hours and a 0.60% drop over the past week. The company’s market capitalisation stands at €48.71 billion, with an average daily volume of 1.36 million shares over the past three months.

In the current South African market context, investors should note that while the stock offers attractive valuation and income potential, its moderate volatility and ongoing restructuring bring both opportunity and risk.

Our complete analysis of the Volkswagen stock

After a thorough review of Volkswagen AG's most recent financial disclosures, as well as a detailed analysis of the stock's multi-year performance, it’s evident that this iconic automotive leader stands at a pivotal juncture. Leveraging data-driven assessments—spanning key financial indicators, technical signals, sector trends, and peer benchmarking—our proprietary models have highlighted significant potential embedded within Volkswagen stock. So, why might Volkswagen once again represent a strategic entry point into the global mobility and auto technology sector for 2025?

Recent Performance and Market Context

Volkswagen’s stock (VOW3) is currently trading at €95.82, having rebounded substantially from its 52-week low of €78.86. Over the past six months, the share price has delivered an impressive +18.71% recovery, marking a clear reversal following last year's -20.68% drawdown. Year-to-date performance is in positive territory as well (+8.08%), underscoring renewed market appetite and growing confidence that the majority of restructuring-related headwinds are becoming increasingly priced in.

The broader sectoral context is constructive: as major auto manufacturers accelerate their pivot toward electric vehicles (EVs) and digital platforms, those with a diversified global presence and strong balance sheets are attracting interest. Volkswagen fits this profile. The company recently finalized a landmark agreement with its unions, providing operational clarity into the next decade, while simultaneously embarking on one of Europe’s most ambitious automotive restructurings—aimed at boosting flexibility, innovation, and cost discipline.

Macro conditions may also provide a tailwind: gradually receding inflation in core European markets, improving consumer sentiment, and a stable euro-dollar relationship are combining to support Europe’s industrial exporters. These structural trends, coupled with Volkswagen’s robust legacy and global network, set the scene for potential outperformance.

Technical Analysis

Recent technical signals for Volkswagen have shifted distinctly bullish. The 14-day Relative Strength Index (RSI) stands at 57.67, aligning with a neutral bias but signaling room for further appreciation before approaching overbought territory. More notably, the Moving Average Convergence Divergence (MACD) indicator provides a clear buy signal, supported by an MACD reading of 1.65.

Volkswagen’s price has consistently held above these key levels, indicating robust institutional support and strengthening momentum. Strong support is established between €94.05 and €95.09, with resistance zones nearby (€96.13 to €97.17). The technical consensus remains overwhelmingly bullish, with 17 buy indicators signaling a potential entry for investors anticipating further upside—especially as the macro landscape stabilizes.

Fundamental Analysis

Fundamentally, Volkswagen’s profile remains compelling. Despite a one-off contraction in both revenue (-0.5% YoY) and operating profit (-42% YoY) in Q3 2024, the company retains powerful competitive advantages:

• Attractive Valuation: Volkswagen trades at just 5.16x trailing earnings—substantially below industry averages—and at a Price/Sales ratio of 0.15 and Price/Book ratio of 0.26. These metrics strongly suggest that the stock is undervalued based on traditional fundamentals.
• Earnings Resilience: EPS (TTM) stands at €18.56, which, despite recent headwinds, demonstrates the underlying strength of Volkswagen’s business model.
• Strategic Expansion: Volkswagen leads in multiple global segments—boasting core brands such as Audi, Porsche, Bentley, and Lamborghini—and is accelerating its pivot toward electrification and software-driven platforms.
• Global Market Share: As the world’s second-largest automotive OEM by volume (9 million vehicles sold in 2024), Volkswagen’s diversified product mix and unmatched distribution capabilities reduce its exposure to regional downturns.

While 2024’s restructuring brought short-term operational volatility, it lays the foundation for improved long-term profitability, flexible production, and sustained investment in high-growth segments—particularly electric and software-defined vehicles.

Volume and Liquidity

Liquidity is another important aspect that underpins investor confidence in Volkswagen. The stock enjoys an average daily volume of 1.36 million shares, reflecting deep institutional interest and facilitating effective execution for both private and professional investors. This sustained volume is a firm indicator of robust market participation and supports dynamic price discovery.

The current free float allows the stock to benefit from responsive valuation adjustments to new information, while the presence of strong anchor shareholders helps provide strategic stability.

Catalysts and Positive Outlook

Several near- and medium-term catalysts position Volkswagen for a robust recovery and potentially renewed multi-year growth:

• EV Transition and Innovation: With billions invested annually in battery technology, charging infrastructure, and digital mobility, Volkswagen is determined to close the competitive gap versus both American and Chinese EV leaders.
• Cost Optimisation: The 2024 union agreement, though involving significant layoffs, is a crucial step toward permanent cost rationalisation. This should translate into margin expansion and greater resilience in an increasingly competitive landscape.
• Brand Synergy: Volkswagen leverages a unique portfolio stretching from entry-level vehicles to ultra-premium marques—enabling cross-pollination of technological breakthroughs and strong pricing power within key segments.
• Dividend Yield: At 6.59%, Volkswagen’s dividend remains among the highest in the global auto sector, providing an attractive income anchor at a time of rising investor demand for yield.
• Strategic Alliances and Digitisation: The group’s push into software and digital platforms, as well as new partnerships across the value chain, signals intent to broaden its TAM in connected mobility.
• Sustainability Leadership: Ongoing ESG investments—including CO₂-neutral production and green finance initiatives—reinforce Volkswagen’s long-term appeal for values-driven and institutional investors.
• Potential Regulatory Tailwinds: Future European and global regulatory developments (such as incentives for EVs and protection against unfair import competition) could provide an incremental boost to Volkswagen’s prospects.

Investment Strategies

Volkswagen’s current setup offers entry scenarios aligned with a wide range of investment strategies:

• Short-term: The recent technical breakout, backed by bullish MACD and supportive moving averages, suggests potential for a swift rebound toward the next resistance levels (€96–€97), particularly as the market digests the impact of restructuring and positions ahead of H2 earnings updates.
• Medium-term: Investors looking for three- to twelve-month exposure can take advantage of the current valuation discount and persistent dividend yield. The removal of restructuring uncertainty, combined with visible delivery against productivity targets, could drive mean reversion and rerating toward analyst targets (+30%, to approximately €119 per share).
• Long-term: For patient investors, Volkswagen’s multi-decade industry leadership, global diversification, depth of innovation, and strategic investments in EVs and digital mobility present a compelling case for sustainable value creation. Entering near technical support and at a historically low P/E ratio provides a margin of safety and asymmetric return potential as the automotive industry transitions toward new paradigms.

Positioning near technical lows or prior to material news flow (earnings, product launches, or regulatory changes) provides a prudent entry, maximising exposure to anticipated upside catalysts.

Is it the Right Time to Buy Volkswagen?

In sum, Volkswagen showcases a unique convergence of strengths: world-class brands, a deeply undervalued share price, high and sustainable dividends, and a strategic roadmap designed to unlock operational agility and innovation over the coming years. The stabilization following a period of strategic uncertainty, robust technical momentum, and sustained liquidity underwrite a scenario in which Volkswagen could be primed for a significant rebound.

While challenges persist, the ongoing transformation, strong institutional support, and the demonstrable commitment to electrification provide an encouraging outlook—especially as the company’s restructuring costs recede and margin improvement initiatives begin to flow through to the bottom line. For investors in the ZA market who favour global blue chips with an attractive total return profile, Volkswagen’s blend of income, discount valuation, and exposure to long-term mobility trends seems to represent an excellent opportunity to reengage with one of Europe’s most powerful industrial leaders.

As we look ahead to 2025 and beyond, Volkswagen stands as a stock that may be entering a new bullish phase—encouraging timely and serious consideration from investors seeking both value and growth within the dynamic automotive and technology landscape.

How to buy Volkswagen stock in South Africa?

Spot Buying

What is cash/spot buying of Volkswagen stock? Spot buying means you purchase real Volkswagen (VOW3) shares in your brokerage account and become a direct shareholder. You can benefit from any share price increases and receive dividends, if declared.

Typical fees: Regulated online brokers typically charge a fixed commission per trade, which often ranges from ZAR 75 to ZAR 150 per order for international shares.

Example with a $1,000 (approx. R18,000) investment:

Let’s say the Volkswagen share price is €95.82 (roughly $104 or R1,900 per share at current rates). With $1,000, you could purchase about 9 Volkswagen shares (total cost: about $940), including an estimated $5 (R90) brokerage fee.

✔️ Gain scenario: If the Volkswagen share price rises by 10% (to about €105.40), your shares are now worth $1,100.

Result: Gross gain: +$100, or +10% on your investment (before fees or taxes).

Trading via CFD

What is CFD trading on Volkswagen? A Contract for Difference (CFD) is a financial product that lets you speculate on Volkswagen’s price movements without owning the underlying shares. CFD trading is popular for its flexibility, offering the option to go ‘long’ or ‘short’ and to use leverage.

Typical fees: CFD trades incur a spread (the difference between buying and selling price), plus potential overnight financing fees if you hold positions for more than a day. No direct commission is charged, but costs build up for longer holds.

Example with a $1,000 stake and 5× leverage:

You open a CFD on Volkswagen using $1,000 (about R18,000) margin with 5× leverage. This gives you $5,000 (about R90,000) in market exposure.

✔️ Gain scenario: If Volkswagen shares rise by 8%, your position increases in value by 8% × 5 = 40%.

Result: You’d make a $400 gain on your $1,000 position (excluding fees and taxes).

Final Advice

Before investing, always compare brokers’ fees, trading conditions, and available features to find the best fit for your needs—especially as costs can vary widely depending on platform and account type. The choice between spot buying and CFD trading will depend on your risk tolerance, investment horizon, and whether you want to earn dividends or maximize flexibility and leverage. Use our detailed broker comparison further down this page to make an informed, confident first step toward investing in Volkswagen stock.

Our 7 tips for buying Volkswagen stock

The latest news about Volkswagen

Volkswagen stock continues to show strong technical indicators, with multiple buy signals and a robust analyst price target. In the past week, Volkswagen shares maintained a positive technical setup: the 20-, 50-, 100-, and 200-day simple moving averages all signal a buy, and the MACD indicator also remains bullish, suggesting upward price momentum. The Relative Strength Index is neutral, indicating there is room for gains before the stock becomes overbought. Over the last six months, the stock rose nearly 19%, and year-to-date it’s up 8%, reinforcing a favorable short- to mid-term outlook. Professional analysts’ consensus targets remain optimistic, with a median price goal of €119.01—30% above current levels—pointing to significant potential returns for investors who enter at current prices.

Volkswagen retains a strong dividend yield, with payments distributed last week and relevance for South African income-focused investors. The company paid its annual dividend of €6.36 per share on May 21, 2025, following the May 19 ex-dividend date—an event confirmed on official exchange and company sources. This payout represents a yield of 6.59%, which is highly attractive for South African investors seeking foreign income streams and portfolio diversification. Although German withholding tax applies, South Africans can benefit from the double taxation treaty in place, potentially improving net yield on dividends received. The combination of above-average yield, ongoing cash flow generation, and undervalued metrics (notably a P/E ratio of just 5.16) increases the stock’s appeal for ZA-based equity income portfolios.

Stability of South African sales and brand presence remains solid, with Volkswagen maintaining strong market share and active regional operations. Volkswagen South Africa continues to be a key automotive player in the local market, with the Uitenhage (Kariega) plant remaining operational and at the center of regional manufacturing. The VW Polo remains a top-seller in the country, consistently ranking among South Africa’s best-selling passenger vehicles in 2025 according to NAAMSA and local auto sales trackers. Importantly, no factory closures or workforce reductions have been reported for the South African subsidiary, and regional sales and aftersales networks are intact. The lack of negative news regarding local operations is a positive signal for analysts monitoring the impact of global restructuring on the African market.

Cost-saving agreements with German unions offer long-term financial efficiency, reducing operational risk and supporting future EV investments. Last week, Volkswagen finalized a significant labor accord in Germany, avoiding widespread plant closures by securing union support for a downsizing and production streamlining program. While this move affects production capacity in Germany and includes planned staff reductions, it lessens the probability of disruptive strikes or escalated costs—a positive for global investors, including those in South Africa. It also frees up capital for Volkswagen’s continued electric vehicle (EV) strategy and infrastructure expansion, necessary as the industry pivots to electrification. This strategic discipline is cited by major equity analysts as a reason for their positive medium-term view on the stock.

Volkswagen’s global diversification and financial resilience act as a buffer against regional shocks, supporting a constructive investment thesis for South Africans. Despite recent underperformance in quarterly results and ongoing restructuring, Volkswagen remains the world’s second-largest automotive OEM, with a broad portfolio including leading luxury and commercial brands, and a notable presence in South Africa. Its global manufacturing base and access to multiple geographic revenue streams mitigate local risks and currency volatility—a factor highly relevant for portfolios anchored in the South African rand. The company’s strong cash position (€50 billion), robust free cash flow, and diversified income via its financial services division all contribute to its ability to withstand economic cycles and invest in next-generation vehicles, making the stock a viable opportunity for South African analysts focused on value, income, and global diversification.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.