Volkswagen’s EV woes continue as new orders miss Q3 target

Europe’s largest automaker is struggling to keep up as the industry goes electric. Although Volkswagen’s EV sales climbed in September, new orders are failing to keep up.

Volkswagen sold 531,500 electric vehicles in the first nine months of the year, up 45% compared to last year (366,600).

The automaker’s EV share reached 9% in the third quarter, primarily from growth in Europe. Of the over 530K EVs sold this year, 341,100 (64%) were delivered in Europe.

The US saw the second highest growth, with 50,300 deliveries, representing 74% growth over last year. VW’s momentum in Europe and China helped offset sluggish sales in China, its most important market.

Volkswagen’s EV deliveries picked up in China (+11%) in Q3 after slipping 1.6% through June. The company has delivered 117,100 EVs (+4% YOY) in China through the first nine months of the year.

The top-selling models through the first nine months of the year include the Volkswagen ID.4/ID.5, ID.3, and Audi Q4 e-tron.

Volkswagen’s new EV orders struggle to gain traction

Despite the success in the third quarter, Volkswagen is still struggling to attract new EV orders.

“Our order intake is below our ambitious targets due to the lower-than-expected overall market trend,” Hildegard Wortmann, who oversees VW’s marketing and sales, explained.

According to a VW spokesperson, the growth in Q3 was fueled by a higher backlog, which has been waiting to be processed. Supply chain and logistics issues led to extended delivery times, which are now being worked out.

Volkswagen lowered its guidance earlier this year as it aims for 8% to 10% EV sales share, down from 11%. The struggles have led Volkswagen to cut temporary workers and pause production at two German plants last month.

The automaker hopes new EV launches like the flagship ID.7 will help reverse the trend. It will be launched in key markets, including Europe, North America, and China.

In August, Volkswagen opened pre-orders for the ID.7 in Europe with a starting price of $62,000. Next month, the company’s joint venture with FAW in China is launching its version of the electric sedan, the ID.7 Vizzion. Meanwhile, VW will launch the ID.7 in North America next year.

Electrek’s Take

EV leaders like BYD and Tesla are outpacing Volkswagen. BYD surpassed VW to earn the title of China’s top-selling automaker earlier this year and has widened the gap since.

With demand slowing, Volkswagen slashed ID.3 and ID.4 prices in the region earlier this year to stunt growth. Although the price cuts have boosted sales, how long can Volkswagen keep it up?

The automaker is scrambling to get back on track as electric vehicles are only expected to continue gaining momentum.