While Navigating a Rough 2025, VW Sees EV Sales Surging
The automaker reports that one in five models delivered in western Europe during the first six months of the year was all-electric, pointing to steady growth amid a still-uncertain worldwide outlook.
VW sales declined in North America by 7% in the first six months of the year, with a host of geopolitical and business issues to blame.
The year began for the auto sector on a rough note, with threats of tariffs that have yet to be resolved, quickly throwing end-of-year forecasts out the window for just about all automakers, whether they had EVs in their lineups or not.
The year also began for the VW Group weeks after it reached a historic deal with its trade unions in Europe, avoiding factory closures but committing to a gradual reduction in the workforce.
The tariff picture had evolved a bit over the past few months but remains far from crystal clear, as the EU continues negotiations with the US over the latter's sudden tariff policy. The US will also be discontinuing the $7,500 EV tax credit in a matter of weeks.
It's a nervous time to be an automaker no matter where your manufacturing footprint happens to be.
How did the VW Group navigate the first half of the year when it comes to its electric offerings?
The good news is that the VW Group saw modest growth in a number of emerging markets, especially when it comes to BEVs.
BEV Deliveries Up Almost 50%
The automaker reports that global deliveries of BEVs are up by almost 50% during the first six months of 2025, compared to the same time period in 2024.
In all, the Group delivered 465,500 BEV models worldwide by the end of June, representing a 47% increase over the previous year, which saw 317,200 deliveries of BEVs.
And one region in particular has shown promise despite significant headwinds.
"One in five of the vehicles we delivered in Western Europe is now purely electric," said Marco Schubert, member of VW Group's Extended Executive Committee for Sales.
But growth isn't confined just to electric models. VW Group saw increases in orders along all drivetrain platforms.
"Across all drive types, they went up by around 20%. We need to further strengthen this positive development by continuing our successful model offensive," Schubert added.
It's not difficult to guess just which regions saw setbacks for the VW Group during the first half of 2025.
Sales Down in North America, China
Vehicle sales declined in North America by 7% for VW and in China by 2%, albeit for different reasons.
The US saw significant volatility tied to the threat of tariffs in the spring, while in China VW continued losing market share to domestic automakers, whose share of the market has continued to surge unabated.
Volkswagen's long-anticipated ID. Buzz also appeared to see a softer-than-expected sales launch stateside, in addition to a slightly bizarre recall.
By comparison, Central and Eastern Europe saw gains of 9% in the first six months of the year, while South America led the way with an 18% bump.
Overall, the VW Group delivered 4.41 million vehicles in the first six months of the year, representing a 1.3% increase over 2024. That's a rare win in what is still a very unpredictable environment, especially as it concerns electric models.
"Overall, we were able to slightly increase our global deliveries by the end of June despite challenging conditions," Schubert added.
"Gains in South America and Europe more than offset the expected declines in China and North America."
However, the VW Group and its brands aren't out of the woods yet when it comes to 2025.
The demise of the $7,500 EV tax credit in the US at the end of September—and the uncertainty over a trade deal between the EU and US, which is now said to be within reach—will set the tone for the rest of the year even if everything else remains stable.
Will tariffs on foreign vehicles affect your car-buying choices in the coming years? Let us know what you think in the comments below.
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