Volkswagen has been the most audacious automobile manufacturer when it comes to the transition towards EVs. It has invested more than $80 billion across brands to kick start its transition towards a sustainable population and also rehabilitate its image in the US market after the diesel gate fiasco. Now with its ID. brand of electric cars under the mother brand of Volkswagen, it has reached a pertinent milestone. It has delivered 500,000 cars in 2022 with further ten models for the ID line in the pipeline which will further help accelerate its electrification strategy.
Volkswagen has revealed that it has had more than 100 per cent year-on-year growth and that trend has further continued as demand for electric cars soared with more models being offered. Many analysts have predicted that Volkswagen will eventually overtake Tesla in sales as early as 2024 within just two years of starting deliveries of the ID.3 EV. And these predictions seem to be on track as it has now surpassed the 500,000 unit benchmark.
It is just not that the demand for electric cars is increasing. Generally, goodwill around the Volkswagen brand is also helping matters. People in particular want a VW EV. The fact Volkswagen reveals that it has 135,000 more EVs in the order bank that it is yet to deliver is reflective of the demand it is seeing. Volkswagen notes this is a 65 per cent increase compared to 2021.
“Delivery of half a million ID.s confirms that the Volkswagen models are being well-received by our customers – all over the world. We are on the right track with our electric mobility campaign and our success story continues. Our focus is unchanged – we want to make Volkswagen the most desirable brand for sustainable mobility. We are doing our utmost to deliver the roughly 135,000 ID.s on order to our customers as quickly as possible. However, due to the persistently strained situation as regards the supply of parts, we are repeatedly having to adjust production,” said Imelda Labbé, the VW board member for sales, marketing and after-sales.
Times have been tough for automakers across the globe with supply chain issues, inflation and now terms in the US with regards to federal tax credits coming into play, yet Volkswagen has been able to adapt and pivot. This happened when suddenly Oliver Blume was elevated to the position of CEO as Herbert Diess was ousted because of opposition from the Volkswagen labour groups.
By 2026, Volkswagen will also have a $25,000 EV which will be an entry-level model that could work wonders in emerging markets like India where also the brand is seeing good growth. It also has the Aero B sedan concept.
By 2033, Volkswagen has revealed in Europe it will only be selling electric cars and 50 per cent of all its sales by the time will be electric in the US and China markets. It even is assembling its ID.4 SUV in the US at its Chattanooga plant in Tennessee.
