Volkswagen's electric-vehicle story split sharply by region in the third quarter. U.S. deliveries plunged, while Europe showed much stronger EV uptake.
There is some hope on the horizon stateside with new vehicles coming soon.
Here's what to know
Over July to September, TNW reported Volkswagen moved 1,421 EVs in the U.S., a 90% drop, while battery-electric vehicles represented 29% of new August registrations in Europe.
Nearly all of those U.S. EV sales came from two models, as InsideEVs reported first. Volkswagen sold 989 ID.4s, down 92.1% from 12,470, and 432 ID. Buzz units, down 82.5%.
Across all powertrains, Volkswagen's U.S. sales slipped 10.9% to 78,179. The EV collapse, however, looks more like an inventory problem than a sudden evaporation of demand, because dealers had largely been working through remaining stock.
The supply squeeze stemmed from manufacturing changes, TNW said. Chattanooga ended ID.4 production in April so it could turn to the gas-powered Atlas, while ID. Buzz imports were put on hold, leaving only 2025 models available.
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By EV-industry standards, the drop ranked among the market's worst, even though Volkswagen's European numbers point to a healthier backdrop overseas.
More background
Europe has been moving in the opposite direction for Volkswagen, the outlet wrote. Battery-electric vehicles captured 29% of August registrations across the region, and in Germany, the company is receiving more orders for EVs than for gas and diesel vehicles. Four budget EVs built in Spain have attracted roughly 100,000 orders combined.
TNW reported Volkswagen dropped extra Wolfsburg shifts as demand for combustion vehicles softened, while adding shifts in Emden and Zwickau.
At the same time, Chinese brands reached a record 10.9% of the European market in June, roughly doubling their share, per the outlet. That growing competition has chipped away at Volkswagen's position in plug-in vehicles, with the Tiguan plug-in hybrid falling from Europe's top-selling plug-in model to fourth place behind BYD's Seal U.
What's being done?
Volkswagen has several product updates planned for U.S. buyers, TNW reported. The company plans to launch the ID. Tiguan, reviving a familiar name while adding a front trunk and more physical controls.
Volkswagen also expects the ID. Buzz to return as a 2028 model with a native NACS charging port. Until the 2028 model arrives, the company's U.S. EV lineup will largely depend on what remains available on dealer lots.
The ID.4 has been reduced by as much as $12,500, while the ID. Buzz still starts at $61,545 and tops out at 234 miles of range.
Europe has tariffs as high as 35% on battery-electric vehicles from China, but not on plug-in hybrids. Volkswagen faces mounting pressure from Chinese automakers in one of its most important markets.
Where can I learn more?
Volkswagen's U.S. slowdown and Europe's stronger EV demand don't exist in a vacuum.
• In Europe, automakers are shrinking their EVs to counter SUV bloat and Chinese rivals.
• In the U.S., more EV models are disappearing as Tesla, Hyundai, and Kia retreat.
• Tesla remains the best-selling EV brand in the U.S. even as growth gets choppier.
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