11 Jul 2023, 13:55
James Jackson

VW registers sharp drop in domestic demand for electric cars – media report


Volkswagen’s domestic sales of electric cars in Germany are far behind the company’s plans, insiders told business daily Handelsblatt. Executives at some VW plants said demand for particular battery-electric models had fallen “to zero,” while car dealers pointed to a general reluctance of European consumers to buy electric cars, blaming subsidy cuts, high inflation and comparatively high prices. With reference to price cuts by US rival Tesla, company insiders told the newspaper “the development is fatal,” adding there was also a “clear fall in orders” for combustion models. A VW spokesperson pointed to “a general reluctance to buy electric cars”.

The German car giant is facing stiff competition at home and abroad. Volkswagen entered into a price war with U.S. rival Tesla, which has cut prices and is now significantly outselling VW. VW produced 97,000 battarey-electric vehicles between January and May of this year but only sold 73,000 of them, compared to 100,000 Tesla Model Y sales in the same period, according to data service provider Marklines, Handelsblatt wrote. VW is also rapidly losing market share to low-cost Chinese manufacturers in the electric-heavy Chinese market, VW’s most important export market by far.

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