Updates share move, adds milestone, analyst comment, German peers in paragraphs 2, 5-7

By Amir Orusov

Jan 22 (Reuters) - Shares in Volkswagen VOWG_p.DE jumped to the top of Germany's blue-chip DAX index .GDAXI on Thursday after Europe's largest carmaker reported better-than-expected 2025 net cash flow in its automotive division.

Shares climbed to 103.70 euros ($121.24) by 0953 GMT, putting them on track for their biggest one‑day gain in six months if the rise holds.

Net cash flow for the year came in at around 6 billion euros, said Volkswagen on Wednesday evening, 1 billion euros higher than the previous fiscal year and beating the company's expectations of around zero net cash flow.

While management had already hinted at potential upside to the guidance, the magnitude is surprising, analysts at Jefferies said in a note.

Industry sentiment was further buoyed by U.S. President Donald Trump backing away from Greenland tariffs, helping to ease immediate market worries over punitive trade measures, Warburg Research analyst Fabio Hoelscher said.

The pan-European automobiles and parts index .SXAP was up around 2.3%, with German carmakers BMW BMWG.DE, Mercedes MBGn.DE and Porsche P911_p.DE rising between 1.9% and 2.6%.

"The federal electric vehicle subsidies in Germany and a technical rebound on the sector's relatively low valuations could be helping too," Hoelscher added.

($1 = 0.8557 euros)

($1 = 0.8554 euros)

(Reporting by Amir Orusov
Editing by Linda Pasquini and Miranda Murray)

((Amir.orusov@thomsonreuters.com))