Volkswagen, Europe’s largest automaker, faces a significant challenge as it navigates the industry’s shift towards electrification. Volkswagen’s electric vehicle (EV) sales surged in September, but new orders are struggling to keep pace.
In its first nine months of the year, Volkswagen acquired 531,500 electric vehicles, representing a 45% increase from the previous year’s total of 366,600.
The automaker’s electric vehicle (EV) market share surged to 9% by the end of the third quarter, driven largely by growth in Europe. Last year, a staggering number of electric vehicles were purchased – more than 530,000 units. A significant proportion of these, 341,100 to be exact, or roughly 64%, found their way to European roads.
The United States witnessed a substantial increase in deliveries, with a total of 50,300 instances, marking a remarkable 74% growth compared to the previous year’s figures. Volkswagen’s positive momentum in Europe and China mitigated the impact of stagnant gross sales in its key Chinese market.
Volkswagen’s electric vehicle deliveries showed a notable rebound in China during the third quarter, with sales increasing by 11 percent, following a decline of 1.6 percent through June. Between January and September, the company successfully delivered 117,100 electric vehicles (EVs), representing a 4 percent year-over-year increase in China.
According to industry reports, the top-selling fashion vehicles for the first nine months of the year were the Volkswagen ID.4/ID.5, followed closely by the ID.3 and Audi’s This autumn e-tron.
| High-selling VW EVs | January – September gross sales |
| ID.4/ ID.5 | 162,100 |
| ID.3 | 90,500 |
| Audi This autumn e-tron | 77,900 |
| ŠKODA Enyaq iV | 54,400 |
| CUPRA Born | 32,300 |
| Audi Q8 e-tron | 21,800 |
Volkswagen’s electric vehicle (EV) order book struggles to gain momentum.
Despite a successful third quarter, Volkswagen remains challenged in generating new electric vehicle (EV) demand.
“Volkswagen’s order intake lags behind ambitious projections due to slower-than-anticipated overall market growth,” said Hildegard Wortmann, head of the company’s advertising, marketing, and sales department.
The Volkswagen spokesperson attributed the company’s third-quarter growth to the processing of a previously accumulated backlog, indicating a surge in demand. Disruptions in the chain of logistics have contributed significantly to ongoing supply delays, currently being worked through.
Volkswagen has adjusted its steering wheel trajectory in recent times, as it aims to achieve an electric vehicle (EV) market share of 8% to 10%, a slight reduction from the previous target of 11%. Volkswagen has been forced to dismiss temporary workers and halt production at two German plants in recent months due to ongoing struggles.
The German automaker hopes that its upcoming electric vehicle (EV) launches, including the highly anticipated ID.7 flagship model, will help reverse a recent decline in sales and growth momentum. The highly anticipated product is expected to make its debut in a trifecta of strategic markets: Europe, North America, and China.
Volkswagen launched early ordering for its ID.7 model in Europe in August, starting at a price point of €56,000 ($62,000). Subsequently, Volkswagen’s joint venture with FAW in China will launch the ID.7 Vizzion, a model from their electric sedan lineup. Subsequently, Volkswagen plans to introduce the ID.7 model to the North American market within the next 12 months.
Electrek’s Take
Electric vehicle (EV) leaders like BYD and Tesla continue to leave Volkswagen in the dust. In a remarkable turn of events, BYD surged past Volkswagen in 2022 to claim the mantle of China’s leading automaker, and has subsequently expanded its lead.
As demand wanes, Volkswagen has taken swift action by reducing production costs for its ID.3 and ID.4 models in certain regions, effective earlier this year, in an effort to curb spending and maintain momentum. Despite the surge in gross sales triggered by price reductions, can Volkswagen sustain this momentum for long?
As the industry accelerates its shift towards electrification, the automaker is working diligently to regain traction and stay ahead of the curve in a market where electric vehicles are poised to dominate.
