The VW Group is struggling to turn its electric vehicle push into stronger profits, with the German automotive conglomerate openly acknowledging that battery-powered cars still generate lower earnings than their combustion-engine counterparts. The admission comes as the automaker faces mounting pressure from China, U.S. tariffs, and intensifying competition in Europe.

'The market success of our electric vehicles is putting additional pressure on our earnings, because we currently earn less from electric vehicles than from combustion-engine vehicles,' Arno Antlitz, chief financial officer and chief operating officer, said in a statement accompanying the company's nine-month results published today.

The comments highlight a difficult balancing act for the Group. Demand for its electric cars is growing, but selling more EVs isn't necessarily translating into higher profits.…