Volkswagen, Europe's top carmaker, forecast another challenging year of ramping up EV sales, cutting costs, and navigating trade tensions as it seeks to streamline its operations in Europe and catch up with cheaper and faster rivals in China.

German auto giant Volkswagen said Tuesday its annual profits nosedived during a torrid year that saw Europe's top carmaker increasingly struggle with high

The German auto giant saw its earnings fall last year, as it pushed ahead with a restructuring in the face of tariff uncertainty in the United States and lost market share in China.

Volkswagen, Europe's top carmaker, expects at best a slight increase in its 2025 operating profit margin, it said, joining rivals in giving a subdued outlook for the year ahead as the sector battles weak demand and simmering trade tensions.