Welcome to our annual media conference of Volkswagen Group. We're here with you at the drive in Berlin. That's great. We have our main protagonists on stage: our CEO, Oliver Blume, and our Chief Financial Officer and Chief Operating Officer, Arno Antlitz. It's a great pleasure to see all of you here. Despite all the industrial action going on, individual mobility seems to work really well. Our annual media conference is webcasted globally, so we would also like to welcome all those of you who are joining us online. Oliver Blume and Arno Antlitz will now, in a few moments, look back at a financial year of 2023, which was a compelling one, challenging one also. Also how our company has developed in this past year with its 680,000 employees.
But when the two gentlemen are finished, we are ready to take your questions here in the room. Please just raise your hands. And those of you who want to ask a question on the online platform, just drop us a note in the chat. Any report and management report are available on the website. You can also talk to our colleagues here. And with that, it's over to Oliver.
Good morning, ladies and gentlemen. I would also like to welcome you most cordially to our annual media conference of the Volkswagen Group. I don't think there could be a better venue for this event than the Drive Forum in Berlin. We are surrounded by icons from our strong brands. These products are an expression of our unique heritage. They have inspired people for generations and have shaped the zeitgeist for decades. Our ambition for the mobility of the future is to play a vital role in the life of our customers. The foundation for that is inspiring products, robust financial results, and a visionary strategy with clear operational priorities. The Volkswagen Group is setting out on the long-distance race to transform the automotive industry from a position of strength. The strength of the Volkswagen Group lies in the strength of its brands.
We inspire customers worldwide with a fascinating product portfolio in all segments. In 2023, we launched numerous new products and celebrated highlights that have thrilled fans all over the world: the new VW Tiguan ID. Buzz, the Bentley Bentayga, the Porsche 911 Dakar, the VW ID.7, the Cupra DarkRebel Showcar, and the Lamborghini Revuelto. These are just a couple of examples. 2023 was a demanding year with many different challenges, a year in which the Volkswagen Group proved its strength and robustness. The number of vehicles delivered in 2023 ran at 9.2 million, 12% higher than the previous year in all the world regions. They have contributed with growth, particularly in Europe and North America. Deliveries in China were also on the rise despite a very challenging environment in that region. Sales revenue reflected the growth in deliveries. The year-on-year rise was 15%.
Operating profit came in at $22.6 billion. Cash flow amounted to $10.7 billion, and the profit after tax amounted to $17.9 billion. Allow me, if I may, to give you a qualitative assessment of our key financial performance indicators compared with the previous year. In absolute terms, our operating profit reported is slightly above the figure of 2022. Before valuation effects, chiefly from commodity derivatives in both years, and this is the real statement, operating profit in 2023 saw double-digit growth. The drivers are a solid order bank, an improved product mix, and optimized prices. At the same time, and this is particularly important to us, the restructuring efforts and the performance programs are gaining traction. The double-digit growth in profit after tax underpins this solid result. With a more rigorous working capital management that we've implemented consistently, the net cash flow more than doubled.
The Volkswagen Group is delivering despite very difficult conditions and, in particular, volatile markets. We have laid a very solid foundation. But at the same time, we are also very much aware of our problems, and we are systematically addressing them in order to leverage the enormous potential of the Volkswagen Group. Our performance in 2023 testifies to the fact that we are capable of tapping this tremendous potential with clear and measurable targets, clear areas of responsibility, and a roadmap for the implementation. 2023 was the year in which we restructured the Volkswagen Group. All the goals we set ourselves were met thanks to a tightly scheduled agenda, and some of our goals were achieved faster than originally anticipated. Speed is particularly important as regards the transformation of the automotive industry that is currently underway.
We are making good progress, visible and measurable, day by day, inch by inch. Our current planning round focuses on consistent premises and the strategic orientation of our company. It is based on strategic planning for investments with the help of our product pools, a revised product strategy, realistic sales volumes for plant allocation, and performance programs for our brands. These roadmaps and milestones lead us to a much better improvement in results, margin, cash flow, and investment level. In order to make the Volkswagen Group and its brands fit for the future, last year we launched ambitious performance programs throughout the entire company. We agreed specific strategic return targets for each brand. These will result in a strategic return on sales for the Volkswagen Group of between 9% and 11%. As I'm sure you'll know from other projects, I set ambitious goals and aims for double-digit returns.
We are working with the same methodology, full transparency, and measurability in all the brands. In terms of content, the goals are to increase earnings, to cut costs in all areas at all levels of the company, and to open up additional sources of revenue. One of the main reasons that customers buy our products is the design. We are working methodically with design identities for our brands, identities for product differentiation, and identities for regional design requirements. We have thus systematically launched design programs at all our brands. We are convinced that our orientation as a design-driven company offers genuine added value. That means a uniform appearance at all external and internal touchpoints from the company and the products through to all the services that we offer. Our customers and we ourselves place the highest demands on the quality of our products.
We look at quality at every link in the chain, from vehicle concept, materials, and finish through to software and connectivity. Sale, vehicle handover, vehicle reliability, and service are also decisive criteria for customer appeal and enthusiasm. For all brands, we have measurable quality programs for every link in the chain, and we are really making very good headway. China remains the world's largest auto market. 2023 was a very successful year for the Volkswagen Group. We maintained market leadership in this very dynamic market environment. Our brands put on a strong performance. We expanded total deliveries to 3.2 million vehicles, and the share of electric vehicles increased overall by 23%. For Audi, 2023 was a record year for deliveries in China.
We have developed, and this is particularly important, a 2030 target for China for the Volkswagen Group under the motto "In China, for China." We are focusing more closely on in-house development, speed, greater localization, and new strong partnerships. North America, on the other hand, offers significant growth potential for the Volkswagen Group brands. We are building on a strong tradition in the region. We've been active in Mexico for more than 60 years. In the U.S., the Volkswagen brand celebrated its 75th year anniversary of market presence with a brilliant commercial during the world's greatest sporting event, the Super Bowl in Las Vegas.
[Foreign Language]
These are cool images, huh? We really do understand the American spirit, but not only that. We also actively contribute to it. What's rather promising is the revival of the Scout cult brand. This is how we are laying the foundation for an electric rugged SUV and pickup brand in the largest and most profitable US segments. We are convinced that the USA, Mexico, and Canada are attractive locations for the Volkswagen Group. Construction work has commenced on the new Scout factory in South Carolina and on our battery cell factory in Ontario, highlighting our ambitions. Reorganizing our software company, CARIAD, was one of our utmost priorities in 2023. With a new leadership team headed by the new CEO, Peter Bosch, we are driving restructuring forward. With a systematic five-point plan, we are redesigning processes, organizational structures, tools, management models, and also our partnerships.
A key factor is the deliverability of the E³ 1.2 platform . With the Audi Q6 e-tron and the Porsche Macan, we are getting ready with two important models for our new market debut. One of the Volkswagen Group's strengths is high performance, standardized vehicle platforms. Building on that, we have realigned our architecture structure and redefined clear development responsibilities. We are arranging architecture according to performance and functionality segments. Volkswagen, Audi, and Porsche have key roles to play in this particular context. All group brands access the relevant development capabilities based on their positioning. That gives us high scalability, improves our development efficiency by focusing our brands and makes the best use of group synergies. The battery is at the heart of the mobility of tomorrow. We have bundled the group in-house battery cell development and manufacturing activities in PowerCo. Our three battery cell factories are progressing as planned.
Construction work on the first buildings in Salzgitter has already begun. In Valencia, Spain, and in St. Thomas, Canada, excavation work has been completed. As regards technology, numerous innovations have been started. For example, with dry coating, we managed to achieve a real breakthrough. As a consequence of that, we can reduce the energy required to manufacture battery cells by 30% and cut the factory space required by 15%. That's a very good, effective, and efficient investment. Charging infrastructure is an important enabler for e-mobility, and that is why we are proactively committed to expanding this infrastructure. The early network already today provides access to more than 650,000 charging points in Europe. The number of charging points grew by 44% in 2023. For high-performance charging stations, growth ran much higher, and in total it amounts to 118%, so it means it more than doubled.
Turning mobility to solutions, we have rearranged our map of offerings and partners. A key milestone was the start of the development work on the integrated mobility platform. At the same time, the integration of Europcar in the Volkswagen Group unlocks significant potential. We are also picking up speed when it comes to autonomous driving. We made decisive progress with the autonomous ID buses in the pilot cities of Munich, Hamburg, and Austin, Texas. In the Volkswagen Group, sustainability is our bedrock for responsible action. Our brands have already achieved a great deal. I would like to present a couple of examples from our 800 individual initiatives carried out by the Volkswagen Group in 2023. This is where we've made major headway. Since 2018, we have reduced absolute CO2 emissions from our own production sites by 34%.
Today, the power we purchase for our plants in Europe is already 100% green power. In 2023 alone, we invested more than 14 million hours in the professional development of our workforce. The new ID bus consists of approximately 25% recycled materials. In 2023, our donations in the field of social engagement and corporate citizenship came up to more than $85 million, and this is very important to us. The Volkswagen Group's new leadership team promised to align more closely with the needs of the capital market. For us, investors are both stakeholders and also strategic sparring partners. The exchange with them is of utmost significance to us. That is why we organized the Capital Market Day in the summer of 2023 as the first in a series of investor events.
200 investors and analysts were invited to come to Hockenheimring, and more than 16,000 people followed the event online. The valuable stimuli formed the basis for activities implemented under action fields of relevance for the capital market. This is what you can see behind me on the slide. Let me just give you a couple of examples. What have we achieved so far? We have realigned and significantly strengthened our management team. The sustainability strategy was sharpened and translated to all the brands with clear goals. Our newly developed battery strategy is fully on schedule. We have defined targets for the Volkswagen and Audi brands, and this is where some catching up was necessary with a clear plan for their implementation. In China, we've developed a strategic program, and we are picking up speed with our local partners.
In North America, we are focusing on stronger localization for development and production as the basis for exploiting further market potential. This is where we can tap additional potential. In Europe, we operate from a position of strength with a market share of 25%. It was very important to come up with a strategic vehicle allocation to production plants, and we have taken significant decisions in order to improve our production efficiency. Ambitious brand-specific performance programs make a key contribution to our financial robustness. Our objective is to generate a contribution of over $10 billion across the group by the end of 2024 to offset negative effects across all the different brands. Subsequently, the annual contributions will continuously increase from then on. It's the biggest program that we've implemented in the group. Our capital allocation is oriented to the global profit pools and strategic technological investments.
We informed you about this already, but the total investment in the upcoming planning round, which has just been adopted, will be reduced from $180 billion over a five-year period and will be reduced to $170 billion. Further reductions will follow in subsequent years in order to make more efficient investments. Management remuneration has been linked to target components such as brand and brand group performance, the net cash flow, or a personal performance bonus. We've become much more specific in this regard. The robust financial results illustrate that the group has tremendous potential. Last but not least, our shareholders and employees will participate appropriately in the group's success. You can see for yourselves, we have made significant progress. In 2024, we will work systematically on increasing our market capitalization.
Here, we do not orient ourselves to short-term temporary effects, but we rather focus on a sustainable medium and long-term development. In the last year, we have achieved a great deal. These achievements were only possible with an exceptional team. 2023 was a true sprint for the more than 680,000-plus members of the Volkswagen family all over the world. They are passionate about our company. They make the Volkswagen Group what it is. That is why I would like to say thank you to each and every one of you on behalf of the entire board of management. Well done. 2023 was a great year. Now, I'd like to hand over to my colleague Arno Antlitz, CFO and Chief Operating Officer of the Volkswagen Group. Arno, over to you.
Thank you very much. Good Morning, Ladies and Gentleman.
The Volkswagen Group has achieved robust financial results in what was a challenging environment. We've also made significant progress in the key areas of our strategy. The Volkswagen Group is well positioned. It has a clear strategy. It has a first-class product range and solid finances. It's precisely on this basis that we're going to continue the transformation of our company quite consistently. I would like to thank all of our employees who have contributed to these really convincing results and also have contributed to the progress that we have made in implementing our strategy. I'm now going to turn to our financial results for 2023 in more detail. Our vehicle sales increased by 10% to 9.4 million vehicles, which was driven by a double-digit percentage growth in both Europe and North America. The sales revenue improved by 15% to €322 billion after a strong fourth quarter.
At €22.6 billion, the operating profit was at the same level as the previous year, which corresponds to a margin of 7%. At first glance, this may look like a relatively stable development, but it's actually a significant improvement because the operating profit of €22.6 billion also includes negative valuation effects to the tune of €3.2 billion. These come from the price fluctuations on the commodity markets and also relate to the valuation of our portfolio of commodity hedging. Just to remind you, in the last year, that valuation of the derivatives portfolio still had a positive effect of €1.8 billion. Before those effects, this results in an operating margin of 8%, which is right in the middle of our original guidance range.
With all the global economic challenges and the ongoing trouble in the global supply chains, we believe that this result is truly a solid performance. Our pre-tax profit increased by 5%, and after-tax profit is at €17.9 billion, which is 13% higher than last year's figure. Net cash flow in the automotive division more than doubled to now €10.7 billion compared to what was admittedly a rather poor figure in the previous year. There were two factors that contributed to this good performance. Firstly, a strong operating business and also a significant reduction in inventories in the fourth quarter of around €5 billion. Our teams were largely able to eliminate the bottlenecks related to the logistics of our finished vehicles at the end of the year. This allowed us to significantly increase deliveries of cars to both customers and dealers.
The net liquidity in the automotive division was at a solid €40.3 billion, which is above the target that we set ourselves of 10% of sales revenue. This happened despite the fact that we distributed a net dividend of around €11 billion to our shareholders in 2023. Now what I'm going to do is look at the results of the individual business areas. Let's start with the passenger cars division. They have achieved an operating profit of €14.7 billion, which is almost on par with the previous year. Corresponding margin here was 6.7%. This result, which stands at the level of the last year, is an outstanding performance because we had a strong operating performance. We were able to almost offset the valuation effects from our commodity hedging portfolio.
Heavy commercial vehicles and trucks continued their positive earnings trend and successfully concluded the year also with a strong final quarter. The operating profit more than doubled to €3.7 billion, and the margin is now over 8%. As we expected, the financial services division recorded an operating profit that was around a third below the previous year's high level. Why is that? It's because of the normalization of business in a significantly changed interest rate environment. Also, the residual values of used cars in 2021 and 2022 rose to unprecedented levels because of the shortage of new vehicles due to the semiconductor shortage. We had recognized earlier that this is not going to be sustainable, and we had planned accordingly for that. The reconciliation of earnings then also shows the main drivers of our passenger car business.
It's higher volumes and better pricing discipline that contributed €9.5 billion to our robust result. Currency effects and the effects that I mentioned before from the commodity price hedging had a negative impact of €4.8 billion on our business compared to the previous year. Product costs also have increased again over the years as a whole by €2.6 billion, although we have felt some price pressure easing towards the end of the year. Despite our venturing into new business areas like batteries, like also questions related to inflation, our fixed costs increased only moderately. That, together with our high revenues, have significantly contributed to a more robust situation in the company. We've been able also to improve the overhead cost ratio by 3.5 percentage points since the reference year in 2019.
This happens in an industry, mind you, that earns an 8% to 10% profit margin. This is an outstanding achievement and demonstrates also the commitment of our teams to work to take costs out. Now, it's over to the individual brand groups. The core brand group significantly increased its profit and also margin and cash flow. Operating profit now grew by almost 80% to $7.3 billion. The margin is now at above 5%. Our core brand group has taken really an important first step towards its strategic ROS target of 8%. The Volkswagen brand itself was able to increase its return on sales to 4.1%. We're fully aware that, be there many steps as they are, our volume brands are still some way off the margins of some of our competitors.
It's still encouraging to see that the core brand group generated a cash flow of around €5.5 billion, and the cash conversion rate, which is our ratio of the net cash flow to operating profit, is now 77%. This already indicates that we've made considerable progress in the efficient use of our funds. The Audi-led Progressive brand group managed to rake in an operating profit of €6.3 billion. The corresponding margin here was 9%. That operating profit was burdened by extraordinary effects totaling around €1.4 billion. Those came primarily from the negative valuation effects from commodity hedging. Before these effects, the Progressive brand group generated a decent return of 11%. I really need to emphasize the outstanding profitability of Lamborghini and Bentley. Lamborghini with around 27%, Bentley with around 20%.
Now, that is truly impressive proof to show how we can leverage the synergies in the Progressive brand group because they have had a positive effect on the result of those two top performers. The Sport Luxury brand group continued its successful track record as well, an operating margin here of 18.6%. Traton has delivered. The sales increased by 11%, also thanks to continued robust customer demand and a better supply situation for components and logistics. Sales revenue rose by 16% to €45.7 billion. A strong increase in the volume combined also with positive pricing and good mix effects and also some growth in the vehicle service division led to this significant increase. The operating profit and the operating margin of 8.1% were around twice as high as in the previous year thanks to a strong comeback of MAN and an impressive 12.7% margin at Scania.
Also, the net cash flow of €2.7 billion has increased significantly. Ladies and gentlemen, we can say that overall, we delivered a robust performance in 2023 with a convincing plan, with our solid finances. We're really well positioned for a successful transformation of our company. Because of that, the board of management and the supervisory board will propose a dividend payment of €9.06 per preferred share at €9.00 per ordinary share at the AGM in May, which would correspond to a payout ratio of around 28%. If this proposal is then accepted by the AGM, which we would expect, we will have distributed a total of €22 billion to our shareholders. That includes the years 2021 to 2023 and also factors in the special dividend we paid in connection with the Porsche IPO.
These €22 billion, as a figure, is really an impressive proof that Volkswagen shareholders are participating in the financial success of the company. Ladies and gentlemen, the Volkswagen Group has a portfolio with some of the most inspiring and valuable brands in our industry. It's the strong brands and our convincing products that will continue to make a difference. We are now transforming ourselves into a company in which technology and mobility services are playing an increasingly important role. It means we're focusing on our platforms, the architecture of our all-electric vehicles, the high-performance scalable software, the development and the production of battery cells, the hedging of necessary raw materials. We're also developing a platform of mobility services.
As we organize our brand groups and the tech platforms, we can also manage the transformation of our company to become focused on electric mobility, on digitization in a financially targeted type of way. This, in a way, requires us to take bold and smart decisions in allocating our resources for future activities. At the same time, we want to keep our internal combustion engines also competitive during that transition phase so we have enough flexibility that we actually need in the current environment. It's a dual task, ramping up electric mobility and maintaining ICE cars during the transition phase. This is also reflected on our investment ratio. The total R&D expenditure in the automotive division was €21.8 billion or 1.8% of revenue in 2023. The group also spent a total of €14.4 billion on investments, which corresponds to an investment ratio of 5.4%.
Now, in the medium term, our focus will have to be on leveraging greater group synergies and then also gradually reducing our upfront expenditure that we need for ICE vehicles. This should enable us also to reduce our overall investments to a level of €170 billion in a first step in the 2025-29 planning period. We now expect that 2024 is going to be the year with the highest investments. From there on, the investment ratio will be gradually approaching the target level for 2027, which will be 11%. Now, on to an outlook for 2024. Yes, the economic environment is going to remain challenging. But our 2023 results have shown that we have become even more robust. We have an excellent product substance, and we have launched ambitious earnings programs across our entire group.
We are confident about 2024 despite the somewhat shallow economic outlook and intense competition. The Volkswagen Group would expect that sales revenue in 2024 is to exceed the previous year by up to 5%. The operating return on sales is expected to be between 7% and 7.5%. We expect that the net cash flow in the automotive division is going to be between €4.5 and €6.5 billion. It also includes provisions for our future investments for the battery business area. We're very much aware that the current public debate is somewhat critical in terms of electric mobility here. But we are convinced that the future will be electric, and our investments in battery development will be an important part of precisely this transformation.
Ladies and gentlemen, we do have a clear plan for the transformation of our company because we are going to continue in the ramp-up of our electric platforms and also keep our internal combustion vehicles competitive during that period. We are consistently developing our automotive software stack. We're also investing in future-proof mobility services as well. The priorities for 2024 are also clear from a financial perspective. In 2024, we must focus on the ramp-up of the new vehicles. We must improve our cost base. We must make greater use of the synergies within the group and position ourselves more robustly in the different regions of the world. That is to say, to implement our catching up program in China and grow profitably in North America. Thank you very much indeed. With that, it's back to you, Oliver.
[Foreign Language]
Thank you very much. Arno Antlitz provided very solid results to us, which gives us a lot of tailwind that we need because 2024 will be a very challenging year for the group and for our brands and for each and every one of us. In times like these, one thing is more important than ever before, and that is a strong team. Speaking for myself, I lead a company like a sports team. It's about performance, the right attitude, the right mindset, and team spirit. This requires passion and fairness, which are important prerequisites for a powerful and successful team. For that, we need the right people in the right positions, the right strategy, the right tactics, and a mindset focused on victory. As the group board of management and the examined executive committee, it falls to us in particular to set a good example.
We need to take on responsibility, show the way, be guiding our actions and work in the spirit of trust. That is our ambition and at the same time our obligation. The top 10 program is a key factor for success. Once again, in 2025, we are concentrating on clear priorities, a systematic methodology with consistent structures, and clearly defined objectives. The top 10 program is clear, simple, and explicit but makes it efficient. All the brands in the Volkswagen Group are committed to its logic with their particular fields of action. This is how we can steer clearly and precisely with a high level of transparency and a high level of effectiveness. Now that we've finished putting our house in order, we can now turn our attention to a long-term orientation. This year, we are laying the foundation for the new group strategy 2035.
This will make us take a quantum leap forward. It will be the forepost for our actions in the coming decade, and we will present it in detail to you in the second half of the year. Our top 10 programs are closely linked to this long-term orientation. They are our short and medium-term stages for implementing the sustainability strategy. This methodology enables us to respond flexibly to changed conditions without losing sight of the overarching goal of the Volkswagen Group. 2024, with regards to new products, will indeed be a record year ever. We are gearing up for the biggest product campaign in the history of the Volkswagen Group. More than 30 new models will be launched across all the brands in the course of this year. We are looking forward to many highlights that we hope will position us as a frontrunner in the competition lineup.
We have already announced some of the new models: the Volkswagen ID.7 Tourer, the ID.Buzz long-wheelbase, the Volkswagen Golf, the Škoda Octavia, the Cupra Tavascan, the all-electric Porsche Macan, which is also exhibited here at Drive, and the Audi A6 e-tron, Q6 e-tron. Our product offering brings together efficient ICEs, modern plug-in hybrids, and purely electric vehicles. E-mobility, as Arno Antlitz mentioned already, is the future of the automotive industry. Our investments are geared to that. At the same time, in the period of transformation, which might last another 10 or 15 years, we are concentrating on a flexible product portfolio so that we can cater to the different market requirements across the world. It is important that the e-mobility ramp-up will be supported from all sides.
This also requires a clear political approach, an unequivocal commitment to e-mobility, realistic approaches to CO2 targets, planning security for the industry with regards to legislation, a systematic expansion of the charging infrastructure, intelligent funding models to accelerate the ramp-up, as well as very well-sold through framework conditions to strengthen the German industry in the home market. This is a common task for all of us, an industry where we have to take on our responsibility, politics, and local governments. In the Volkswagen Group, we concentrate on added value and value-creating growth. It is not about high unit sales only, but we work based on the principle value over volume, which we already communicated to you last year. Here, our customers are always in the focus. They're in the heart of whatever we do. The Volkswagen Group thinks global and acts regionally.
A core element of our strategy is the local development and production of products for our customers worldwide. That is part of our Volkswagen strategy. Europe is our home and a core region for the Volkswagen Group. We want to consolidate our strong market position in this region. We manufacture our products in 32 factories in Western, Central, and Eastern Europe. I think this is a very impressive figure, but we employ more than 490,000 people in Europe alone. In China, our goal is to systematically implement our 2030 strategy. We act in China, for China. We want to become the, remain the strongest international car manufacturer in China. We want to continue to rank among the top three car makers in a very challenging environment. Apart from accelerating electrification, we also preserve our strong position in the ICE sector and with hybrid drives.
This is how we retain our financial strength. We locally develop the know-how, which is vital for the success in this market. That is why we founded the China Technology Company. We will employ more than 33,000 people for promoting our technology and software. High speed is our ambition. We want to shorten development times by 30%. We intensify our integration into the Chinese ecosystem. We're implementing innovation faster and aligning ourselves even closer with the expectations of our Chinese customers. Our corporation, for example, with Chaopeng, is a very good example. Together, we are developing two fully connected electric vehicles for the midsize segment. Thus, we are closing a gap in our product range. The market launch is already scheduled for 2026. This goes to show how fast we work. At the same time, we are learning a great deal from each other.
That's really nice. The enormous speed of the project is quite impressive. We're experiencing how Volkswagen can act with China speed. Audi is also accelerating the pace of electrification. For that purpose, a partnership was entered into with the longstanding joint venture partner SAIC. The aim is to develop progressive electric vehicles with state-of-the-art software. The first models are to be rolled out in 2026. The overriding requirement for us is that the cost level of all products we manufacture locally in cooperation with our partners is on par with Chinese competitors. There's no reason why we shouldn't be able to accomplish that goal. In April, we will again play a central role at the Beijing Auto Show. At the Group Media Night, our brands will be showcasing strong new local products for the largest automotive market in the world.
In China alone, we plan to launch more than 40 new models in the next three years. Half of them will be new energy vehicles. These include the plug-in hybrids, by the way. In addition to the Group Media Night, we will also be hosting our first capital market day in China. This was an explicit desire by our investors. We'll focus on the China strategy, the market potential, the profit pools, technologies, and the positioning of our brands. In short, how the Volkswagen Group will continue to be successful in China in future and benefit from forecast growth in this largest market the world over. In North America, we see great market opportunities and significant growth potential. A good understanding of the expectations of North American customers is a fundamental success factor to us. We are focusing on greater localization of decisions and product developments.
This year, we will already be establishing further vehicles designed especially for the US-American market. Thus, we will be tapping local synergies of our strong brands in the US. At the same time, work on building up Scout, our US brand, and on the new Scout factory in South Carolina is making swift progress. Apart from China, North America, and Europe, our strategic expansion is planned for other markets. This is high up on our agenda. In South America, for example, a traditionally strong market for the Volkswagen Group, where we have been running our own production company for more than 70 years. We will continue our regional strategy in India. India has become the world's third-largest single market, with vehicle numbers growing steadily in all the segments. Škoda continues the group activities in India and is already delivering very good results.
For Škoda itself, India has meanwhile become the third-largest sales region. As we expand our activities, we review where we can proceed as a group and where it is meaningful to build on long-standing strong local partnerships. Finally, we are also convinced of the potential in the Southeast Asian region. In the ASEAN states, we have already successfully established CKD production capabilities in the premium segment. We are currently reviewing further possibilities for our brands in this strongly growing region. Our software activities will be a central focal point in the coming year. Software is a core element of the customer experience. The scalability of our platforms is one of the great competences of our group. We also use this strength with regards to our software and electronics architecture. This can become a genuine competitive advantage for the group and the brands.
We have defined the technology fields, and we are now consolidating on their implementation. A strong team is of crucial importance. I'm particularly delighted that new experts with longstanding global experience are now joining and strengthening this team. We would like to welcome Sanjay Lal, who will take on main responsibility for the future. Electron at CARIAD, Sajjad Khan at Porsche, and Frank Han, who will head the Chinese section of CARIAD. The Volkswagen Group is integrating strong team players from Silicon Valley and China's technology hotspot. We will thus become even more successful. In the Volkswagen Group, software is no longer just a neat name for a project, but we are delivering. Our customers already today are benefiting from attractive functions. One example is the ID.7. Electric models have been brought to an entirely new level, especially with regards to software.
In the volume segment, we are the first car maker offering ChatGPT in our vehicles. We are currently transferring this feature to all other products based on the MEB platform with the E1.1 software architecture. The PPE platform as well, with the E³ 1.2 software , will thrill customers all over the world. From this year onwards, we deliver an Android-based operating system as an open-source solution that enables fast and efficient software engineering. We can couple partner solutions, integrating apps as quick and simple. The infotainment system, for example, of the new Macan speaks for itself. It has a seamless integration of Apple CarPlay, an in-depth integration for the first time in this particular fashion. We offer a satellite navigation system with innovative charging planning.
It offers optimal planning of charging stops depending on the battery status, driving style, and the availability of fast charging stations and the realistic augmented reality head-up display. With these features from the Volkswagen Group, we show, and these are just a couple of examples, that already today we match or surpass the competition and win numerous tests. In the future, we are planning to take one step further. Here, responsibility lies with Sanjay Lal. We pursue our vision of the software-defined vehicle, in short, SDV. In the past, vehicle development used to begin with the hardware. But now, we're initiating a paradigm shift. Our development process now begins with the software. That means that we design the vehicle from the perspective of the customer's mobile, digital, and smart world. Audi, Volkswagen, and CARIAD are currently developing this SDV architecture for this first concrete project of these brands.
This architecture will become state-of-the-art. We are working with one single main computer, very few control units, which leads to less complexity and fewer variants. Thus, we are able to reach a much higher level of efficiency. Artificial intelligence plays a very important role in many functions, not just in software development where we can use it, but also and particularly in the utilization of AI-based tools in order to become faster and more precise. Apart from software, battery development is also an integral part and parcel of our technology strategy. The development of the unified cell is thus most essential. Up until 2030, 80% of the group's electric vehicles are supposed to be equipped with that. It will set a benchmark in the field of performance, flexibility, and cost efficiency. We are constantly developing the cell chemistry further.
We are focusing on a cell format with flexible chemistry, enabling us to respond to changes in market needs as quickly as possible. The pre-series will already begin in our Center of Excellence in Salzgitter in the course of this year. Securing raw material supplies is a decisive factor in battery cost efficiency. That is why the Volkswagen Group's battery and raw materials strategy go hand in hand. Some 40% of raw materials needs for 2030 have already been secured. A new joint venture with our partner Umicore, for example, is working on securing cathode material capabilities. Further hedging activities are currently underway. Expanding the charging infrastructure is and remains fundamental to the attractiveness of e-mobility. Through our own activities, we will have installed more than 40,000 fast-charging stations in Europe, China, and the US by 2025.
Here, we are looking at further opportunities. The electric vehicle, in the long run, might turn out to be a smart form of power storage. This is why we are already today using bidirectional charging. Elli is going to develop into a holistic energy provider. This is our plan. We are currently building up our Group-wide mobility platform through the close cooperation between Volkswagen Financial Services and Europcar. This cooperation covers both leasing and financing of vehicles, as well as sharing products from mobility for just a few minutes or for years, everything to be controlled via one central app. We have successfully tested this integrated app during a pilot phase in Vienna last year. In 2024, we will move towards the further expansion of the platform and the app in Germany. Going forward, our mobility solutions are going to be based on a holistic approach.
Our strategic activities and autonomous driving have a key role to play in this context. We are doing this together with a strong network of partners, such as our partner Mobileye from Israel or Autonomous Driving Alliance, where we cooperate together with Bosch and Continental. For the Eastern Hemisphere, especially starting off from China, we are cooperating with Horizon Robotics. Autonomous driving is no longer a fantasy scenario. Our tests with the autonomous ID.Buzz were a complete and utter success. In the future, we will be looking forward to integrating these functions into the interface of our mobility subsidiary MOIA. We will gradually expand our offerings in more than 70 cities in Europe and in the USA over the coming years. The Volkswagen Group bears responsibility for shaping sustainable mobility for generations to come. Our understanding of sustainability is holistic.
It spans the four dimensions of nature, our workforce, society, and entrepreneurship. We call that regenerate.
The Volkswagen Group stands for tradition, for iconic brands, for driving progress, and for overcoming challenges. Now, we're shaping the largest transformation in our history to deliver sustainable mobility for future generations. As a company that cares, it's our responsibility to create and uphold values while prioritizing what truly matters. Our decarbonization strategy is strong, and we've taken big steps on our way to becoming a CO2-neutral company. In addition to our electrification efforts, we support the construction of industrial-scale wind and solar parks. They'll feed more renewable energy into the grid to power our vehicles and generate more job opportunities. Because at the heart of the Volkswagen Group are our people. Being a top employer, we understand the importance of nurturing and developing the team to reach our goals. Transformation means change.
We strive to change for the better. Fostering diversity within the team is essential. We're dedicated to creating a culture that celebrates diversity, inclusivity, and integrity. Our corporate citizenship efforts are focused on environmental, educational, and community projects around the world. Climate protection is the core of our business. It guides our investment choices strategically and operationally. Our top priority is ensuring the successful transformation of our business model. We want to create a positive legacy for future generations. Indeed, the journey has already begun.
Regenerate Plus. This is the group's new sustainability strategy at Volkswagen. It is one very significant pillar of the overarching group strategy that we are going to revise in the course of this year. We are focusing on a strategic, systematic approach with clear operationalization goals, with clear-cut responsibilities, which is very significant to us for the group and for our brands.
Using the four dimensions of our sustainability approach, we can already today present the first selected examples of concrete ambitions in respect of targets. We have brought forward the net carbon-neutral goal for our own plans to the target year of 2040. Our ambition is for our materials to contain a 40% share of recycled products by 2040. Moreover, we want to set up a biodiversity fund with up to $25 million per year from 2025 onwards. The Volkswagen Group is only as strong as its team at the end of the day. That is why we plan to expand investment in professional development and qualification even further. Our goal is to increase the number of hours spent on professional development and qualification by a further 35% by 2030, what we've done so far was mentioned earlier on.
The Volkswagen Group has to take on a lot of responsibility towards society, the environment, and our partners. Overall, we will intensify our commitment to projects with a positive effect in the field of social engagement. From 2025 onwards, we will launch a sustainability impact fund with a further $25 million per year for that particular purpose. Our engagement also includes our commitment to social cohesion. The Volkswagen Group stands for very clear values: freedom, democracy, and cosmopolitanism. We stand for diversity and security. In recent weeks, we have really taken on a clear stance and have tried to shape the social discourse. Diversity in the Volkswagen Group is our strength. We see responsible entrepreneurship and sustainability as an economic opportunity. MAN Energy Solutions is one concrete example of this in the Volkswagen Group. We develop technologies there for the sustainable decarbonization of key industries.
Also, when financing our own activities, sustainability plays a very significant role. It is our aim to refinance at least 30% of the Volkswagen Group's outstanding bonds via green bonds by 2030. Ladies and gentlemen, the Volkswagen Group is facing major challenges: economic and political challenges, technological and social challenges, external and internal challenges. But we have ample opportunities that we can tap in order to be successful in this demanding environment. The Volkswagen Group has tremendous potential. We've put our own house in order and laid the foundation in 2030 for restructuring the Volkswagen Group. We've also set clear guardrails and priorities for 2024 with our top 10 program. We will do the right things the right way, the year in which we launch the biggest product campaign in the history of the group ever, with more than 30 new models which will be launched in the year 2024.
2024 will be a challenging year in technical and economic terms. But we are looking to the future with confidence, and we are already laying the groundwork for swifter business developments from 2025 on. We stand up for our society, our company, our team, and our environment. The Volkswagen Group delivers. We are dependable and sustainable. Volkswagen takes on responsibility. Thank you for your attention.