Is Volkswagen AG (VWAGY) halal? Not Halal. Based on AAOIFI screening, Volkswagen AG passes the business activity screen but fails financial ratio screens with a compliance score of 0/100 (Grade: F).

Volkswagen AG

VWAGY: Is Volkswagen AG Halal?

Not Halal

Volkswagen AG

OTCConsumer CyclicalDE

$9.91

-0.90%

About Volkswagen AG

Volkswagen AG, established in Wolfsburg, Germany, in 1937, operates as a subsidiary of Porsche Automobil Holding SE. This global automotive group is primarily engaged in the manufacturing and distribution of vehicles across key regions including Europe, North America, South America, and the Asia-Pacific. Its diverse operations are divided into four main segments: The Passenger Cars and Light Commercial Vehicles division focuses on designing, producing, and selling passenger automobiles, light commercial vehicles, engines, vehicle software, and associated parts. The Commercial Vehicles segment specializes in the development, production, and sale of trucks and buses, alongside offering related parts and services. The Power Engineering unit is dedicated to large-bore diesel engines, turbomachinery, and propulsion components. Lastly, the Financial Services segment provides a comprehensive suite of offerings, including dealer and customer financing, leasing, banking and insurance products, fleet management, and various mobility services. Beyond its automotive offerings, Volkswagen also produces motorcycles. The company's extensive portfolio encompasses prestigious brands such as Volkswagen Passenger Cars, Audi, 艩KODA, SEAT, Bentley, Porsche, Volkswagen Commercial Vehicles, Scania, MAN, Lamborghini, Ducati, and Bugatti.

Sector: Consumer Cyclical 路 Industry: Auto - Manufacturers

Shariah Compliance Status

AAOIFI Standard 21Updated Jun 19, 2026
F

Non-Compliant

Fails Shariah screening

0Score

Business Activity Screen

Passed

Checks if the business is involved in prohibited activities (alcohol, gambling, pork, conventional banking, etc.)

Financial Ratio Screen

Failed

Financial ratios must be below AAOIFI thresholds

Debt / Market Cap661.4% / 30.0%

Compliance History

Not Halal, unchanged since Jun 2026.

No status changes recorded since we began tracking.

Tracked since Jun 2026. Updates automatically on each re-screen.

Screened: Jun 19, 2026Fiscal: FY 2025Source: FMP-ADR

Financial Overview

Market Cap

49.7B

Price

$9.91

Sector

Consumer Cyclical

Industry

Auto - Manufacturers

Halal Alternatives in Consumer Cyclical

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Frequently Asked Questions

Is Volkswagen AG (VWAGY) halal to invest in?
Volkswagen AG (VWAGY) is rated Not Halal under AAOIFI Standard 21 screening. It fails either the business activity screen (primary involvement in prohibited sectors such as conventional banking, alcohol, or gambling) or one of the quantitative financial ratio thresholds. Muslim investors should avoid or exit this position.
Why did Volkswagen AG get a F compliance rating?
Volkswagen AG (VWAGY) received a grade of F (Non-Compliant) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 661.4% (limit 30%); interest-bearing deposits of 162.0% (limit 30%); prohibited income of 0.57% (limit 5%). The grade reflects the margin of safety across all three ratios relative to their thresholds.
What could change Volkswagen AG's Shariah verdict?
Volkswagen AG's verdict is re-evaluated at each annual re-screen. Three events could change it: (1) the debt-to-market-cap ratio crossing 30%, typically from new debt issuance or a major drop in share price; (2) interest-bearing deposits exceeding 30% of market cap; or (3) prohibited revenue (alcohol, gambling, conventional finance, etc.) exceeding 5% of total revenue. Verdict flips are tracked in the compliance history section above.
How often is Volkswagen AG re-screened for Shariah compliance?
Volkswagen AG (VWAGY) is re-screened annually using the most recent full-year financial data from SEC filings. HalalScreener also triggers an on-demand re-screen whenever the stored data is more than 7 days old, ensuring the ratios reflect the latest available financial statements. Last screened: Jun 19, 2026.

Screened according to AAOIFI Standard No. 21 路 For informational purposes only. Consult a qualified Islamic finance advisor before investing.

Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.