Volkswagen Group reports a significant increase in sales of electric vehicles in Europe, while there is a sharp fall in demand for the company's electrical models in the Chinese market. In the first quarter of 2025, sales of Volkswagen electric vehicles in Europe increased by 112%, which indicates a strong demand for their models in the region. However, in China, where the local electric vehicle market remains extremely competitive, the company has fallen in demand by 37%.
Volkswagen total sales in China decreased by 7.1%. The local electric vehicle market, which is currently half of all sales, remains very competitive, and Chinese startups are gradually displacing foreign manufacturers. Similar difficulties in the Chinese market are also observed in German competitors Volkswagen, such as Mercedes-Benz and Porsche.
However, in the European market, Volkswagen demonstrates impressive results. According to the German Agency KBA, seven of the ten most popular electric models in Germany in the first quarter of 2025 are Volkswagen cars. These results were made possible by successful sales that allowed Volkswagen to strengthen their position in the European market.
While Tesla had previously dominated the electric vehicle market, now its popularity in Germany has declined, and the Model Y model is only in the seventh place. Sales of this model decreased by 70%. Experts explain this reduction in the outdated model line and the fall in Ilon Mask's popularity among buyers through his political views.
As for the US, Volkswagen sales increased by 6.2%. This may be due to the fact that buyers have in a hurry to buy cars before entering new 25% of import tariffs. It is worth noting that about two -thirds of Volkswagen models for the US market are manufactured in Mexico, and all Porsche, Audi and Lamborghini cars are imported from Europe. Therefore, the Volkswagen concern may be particularly vulnerable to the impact of new trade restrictions that can change the dynamics of sales in the US market.
