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.

Volkswagen AG expects profitability to remain roughly flat this year as the German automaker contends with muted demand in Europe and worsening trade conflicts.The manufacturer is projecting an operating margin of 5.

Volkswagen is attempting to produce more affordable EV models to catch up with cheaper Asian rivals, despite facing significantly higher manufacturing costs

The company anticipates revenue growth of up to 5% as it continues to focus on cutting costs and implementing profitability measures.