The Volkswagen Group closed 2024 with a 3.4% decline in global electric vehicle (EV) deliveries, reaching 744,800 units, far from the 33% growth reported the previous year.
This decrease reflects challenges not only in its commercial strategy but also from external factors.
Till Eichler, Policy Officer at Transport&Environment (T&E), points out to Mobility Portal Europe:
“VW finds itself in a very specific situation related to individual business decisions, such as its strong reliance on the Chinese market and the reduction in sales in China.”
Although it increased its EV deliveries in the Asian country by 8% during 2024, since 2019, its market share has dropped from 21% to 12.7% in 2024, reflecting the rise of local players like BYD and Nio, according to T&E data.
And its ties to China are not the only reason.
“Moreover, its strong inclination towards heavy and expensive vehicles, such as luxury cars, is also a factor,” he adds.
This limits its appeal in a market currently demanding affordability, especially in Germany, following the withdrawal of subsidies for EV purchases.
A portfolio led by the ID.4 and ID.5
Among the group’s best-selling models, the VW ID.4/ID.5 led with 182,000 units, followed by the ID.3, which reached 149,100 deliveries.
Meanwhile, some electric models like the Audi Q8 e-tron faced setbacks.
The latter reported 28,200 sales in 2024.
The model is currently paused, as the Brussels plant will remain closed until the end of February, with production being relocated to Mexico.
“This decision was impacted by a sharp decline in specific demand for this segment,” the company detailed to Mobility Portal Europe.
They also confirmed: “We plan to manufacture the successor to the Q8 e-tron at Audi’s plant in San José Chiapa, Mexico.”
Despite this, the Group plans to launch a new affordable model in the B-segment, the Cupra Raval, with an initial price of approximately 25,000 euros.
Meanwhile, its affordable EV, the ID.2, will begin mass production only in 2026, which could put Volkswagen at a disadvantage compared to competitors already offering affordable options.
However, Oliver Blume, CEO of VW, stated in a press release: “In the fully electric car segment, the Volkswagen Group is, by far, the market leader in Europe.”
In this regard, he revealed that this year, they will continue to consistently renew their portfolio and launch another 30 new models on the roads for their customers across all brands.
Volkswagen’s challenges on the global stage
The company is urging the EU to moderate its CO2 emission targets.
The current regulation requires manufacturers to limit the average emissions of their fleets to 80 grams of CO2 per kilometre (g/km), a target intended to promote the region’s climate neutrality by 2050.
According to a report from T&E, the group faces a significant gap in meeting its emission targets, estimated at 28-29 gCO₂/km.
This forces VW to increase the production and sale of EVs to close this gap, whether through individual strategies or alliances with other manufacturers, such as Tesla or Volvo Cars.
For example, if VW were to partner with Tesla, it would only need to achieve a battery electric vehicle share of 17% by 2025 (down from 22%).
According to T&E, the company is expected to achieve 53% of its CO2 improvements in 2025 with battery electric vehicles and 30% with plug-in hybrid vehicles.
It is anticipated that CO2 emission regulations will push VW to focus more on mass-market EVs in the coming years, rather than prioritising short-term profits from premium EVs.
“This could help it reconnect with its historical DNA of selling ‘people’s cars’,” T&E argues.
