An original Kombi and a new ID.Buzz. Source: VW
Volkswagen is continuing to pull ahead of Tesla in the European electric vehicle (EV) market. The VW group’s pure electric deliveries in Europe jumped around 90 per cent in the first half of the year, while global deliveries rose 50 per cent compared to the same period last year, VW said.
“One in five of the vehicles we delivered in Western Europe is now purely electric,” said VW sales executive Marco Schubert. In addition to its namesake brand, the VW group also includes Audi, Porsche, Skoda, Seat, and others.
VW’s surge has been fuelled by deep discounts, putting pressure on profits, according to business daily Handelsblatt. The EV price cuts not only serve to drive sales, but also help VW meet strict EU fleet emission limits.
VW told the daily that the large number of EVs launching in 2025 “will make a significant contribution to the Volkswagen Group’s CO2 compliance.” The company also insisted that EVs are profitable, even if margins are thin.
Tesla’s European deliveries continue to slide, and most recently dropped by around a third compared to last year. Tesla CEO Elon Musk has reportedly taken direct control of European sales following the declining performance, amid a public backlash against the carmaker.
“The cards are currently being reshuffled on the European new car market,” Constantin Gall, a mobility expert at consultants EY, told Handelsblatt. With the technological gap between Tesla and its European competitors closed, the challenge now is making EVs pay, Gall added.
Many industry experts say that VW‘s most important competitor is no longer Tesla, but Chinese brands eyeing the European market. They also point to VW‘s recent dire performance in China, where VW deliveries of pure electric vehicles fell by more than a third in the first half of the year.
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If you're comparing Tesla to VW, then talk about VW in China, then talk about Tesla in China too.
The key difference between VW and Tesla is that Tesla is sitting on a mountain of cash, while VW has mountains of debt. They are one of the most indebted listed companies globally, with debt exceeding €200 billion. And VW is losing market share in the world's biggest car market, China.
And on another level, VW makes low quality cars while Tesla makes the best EV at a reasonable price. I know because I have recently sold my VW and bought the new Tesla Model Y. Chalk and cheese/
My prediction is that VW will continue to shrink for many years, laying off tens of thousands of workers, and may even go bankrupt as the Chinese flood the EU with EVs that undercut VW's offerings.
I also think VW may be forced to withdraw from the Chinese market, and that move alone would mean the company could not service its enormous debt.
So let's not start hyperventilating because VW has temporarily pulled ahead of Tesla while Tesla's factories were shut down and retooling for a new model. The next shoe to drop will be when the buying public discovers the poor VW quality and software. Stay tuned.
"I have recently sold my VW and bought the new Tesla Model Y". I guess that you did not have a VW EV so your comparison is a bit apples and oranges.
VWs EVs are coming from the same workers, the same corporate corner-cutting culture. I expect no sudden boost in quality. Why do you?
The market is much broader than just VW and Tesla.
Both will continue to struggle, in the face of Chinese and Korean brands.
And if ever Japan wakes up, it's curtains for both VW *and* Tesla..
and if ever *insert OEM car maker here* wakes up, it's over to Tesla...
That's a new one, this decade...
VW make cars.
Tesla have cars as one of their revenue streams.
Hahaha!
revenue streams.
Reminds me of how the vatican was shocked to discover that it owned a shedload of brothels. (true story) Somebody told them they were soup kitchens!
"VW’s surge has been fuelled by deep discounts, putting pressure on profits, according to business daily Handelsblatt. The EV price cuts not only serve to drive sales, but also help VW meet strict EU fleet emission limits. VW told the daily that the large number of EVs launching in 2025 “will make a significant contribution to the Volkswagen Group’s CO2 compliance.” The company also insisted that EVs are profitable, even if margins are thin."
Wonderful to see emissions policy having the exact effect it was designed to do, making EVs cheaper and more models available for the buying public to choose from. Fingers crossed the NVES will have the same effect here!