Volkswagen Group expects its vehicle supply issues to improve in the second half of 2022, with a more “normalised” model mix expected to reach its car retailers.

In a first-half trading update published today (July 28) the German car manufacturing giant reported a 2% rise in sales revenues to €132.3 billion (£110.6bn) and a 16% growth in operating profit to €13.2 billion (£11bn) in the first six months of the year.

The result was delivered as the OEM prioritised its premium brand offerings to benefit from strong margins during a period which saw deliveries decline 22.2% to 3.9 million vehicles globally.

In the UK, Volkswagen Group new car registrations declined 29.4% to 171,639 in H1.

But chief financial officer Arno Antlitz suggested that an improved supply chain would see a broader mix of vehicles become available in H2.