Volkswagen has delivered an impressive total of 394,000 electric vehicles to customers worldwide as of 2023, cementing its position as a leading player in the global EV market. While electric vehicle (EV) deliveries surged 21% year-over-year, they still accounted for less than 9% of Volkswagen’s total sales. The corporation anticipates the market will remain challenging throughout the current year.
Volkswagen announced that its e-mobility brand delivered a record 394,000 electric vehicles (EVs) to customers in 2023.
Volkswagen’s electric vehicle sales surged 21.1% in 2023, with approximately 394,000 units delivered globally.
The company’s most significant markets comprised China, Germany, the United States, the United Kingdom, Sweden, France, Norway, and Belgium. Volkswagen delivered approximately 30,000 units of the ID.4 electric vehicle model in Germany, representing a significant 62.9% increase. In the United States, Volkswagen has delivered nearly 38,000 units of its ID.4 electric SUV, representing an impressive 84.2% year-over-year increase.
In China, Volkswagen’s largest and most critical market, accounting for nearly 40% of its total sales, the company has delivered more than 75,000 units of its popular ID.3 electric vehicles, marking a substantial surge of over 200%.
Despite this, Volkswagen’s electric vehicles accounted for just 8% of its total 4.87 million vehicle sales last year. The automaker reduced its electric vehicle production by a notable margin last year, attributing the move to declining demand.
Volkswagen’s Chief Financial Officer, Arno Antlitiz, revealed that electric vehicle (EV) orders plummeted to 150,000 units across Europe in the final quarter of last year? Only about half of the 300,000 VW vehicles were sold last year as we speak.
Volkswagen’s Head of Advertising and Sales, Hildegard Wortmann, attributed the decline in orders to “lower-than-expected total market trend.” She added that last year’s surge in electric vehicle (EV) sales was driven by a significant backlog.
Volkswagen has been grappling with multiple logistical challenges that have protracted supply chain disruptions, which are currently being addressed. The Volkswagen Group has revised its estimate for electric vehicle (EV) gross sales shares, predicting a decrease from 11% to around 8-10% in 2023.
The German automaker hopes a refreshed ID.4 and ID.5 lineup will revitalize sluggish sales figures. Volkswagen’s latest electric vehicles boast a range of advancements, featuring extended distances and cutting-edge technology.
Volkswagen has taken steps to slash electric vehicle costs in Europe, a move seemingly aimed at competing directly with Tesla’s market dominance. As of 2023, Tesla’s Model Y appears to be the top-selling automobile globally, regardless of powertrain, as the electric vehicle leader sustains its momentum by expanding its customer base.
As electric vehicle (EV) demand surges in the US market, Volkswagen’s sales trail Tesla’s, with the German automaker struggling to regain its footing. As the electric vehicle leader, Tesla concluded 2023 by securing a notable 4.2% stake in the US automotive landscape.
Electrek’s Take
While Volkswagen appears to make up for lost ground, other auto manufacturers are pressing ahead? Numerous automotive manufacturers have already achieved double-digit or even 100% gross sales of electric vehicles.
Volkswagen’s electric vehicles (EVs) comprised a notable 8.3 percent of its total deliveries in 2023. The figure is up 1.4 percent from last year’s total of 6.9 percent. As other manufacturers, such as Volvo, have already surpassed a 15% electric vehicle market share.
Volvo reported a significant increase in its electric vehicle sales, with over 113,000 units sold last year, representing a 70% surge compared to the 66,749 vehicles delivered in 2022. The Swedish car manufacturer is introducing a range of fresh designs, including the EX30 (read our in-depth review), priced from $35,000, with the aim of boosting its electric vehicle sales to over $1 billion in 2024.
Volvo’s CEO, Jim Rowan, downplayed concerns about an electric vehicle market slowdown, stating that they’re not witnessing any order cancellations or sales decline despite reports to the contrary.
As Volvo aims to shift its entire lineup to electric power by 2030, Volkswagen sets a more modest goal of achieving 50% electric vehicle sales. As pioneers in electric vehicle (EV) technology, manufacturers such as Volvo and Hyundai are now reaping the benefits of their early investments in this space, while those lagging behind continue to struggle to catch up.
Volkswagen is counting on its new electric vehicles, particularly the ID.7, to drive growth and innovation in 2024. Despite challenging market prospects, Imelda Labbé, a Volkswagen Board Member, forecasts that “the market atmosphere will remain tough in 2024.” The company is confident about its position, boasting an updated lineup that prepares it for the challenges ahead.
Volkswagen has confirmed plans to launch its first affordable electric car, the Spark EV, in 2024. The company aims to expand its electric vehicle offerings and meet growing demand for sustainable transportation. Will General Motors fall further behind industry leaders like Tesla as the automotive sector transitions to electric vehicles? The feedback I should provide would likely suggest improvements in tone, clarity, and organization to make the original text more engaging, readable, and effective in conveying its intended message.
