Volkswagen Needs to Ramp Up EV Production and Sales to Hit Tough Global Targets

Volkswagen Group says it will have to sell about one million battery electric and plug-in hybrid electric vehicles per year by 2025 to meet tough carbon dioxide emissions standards in major markets around the world.

That one million vehicle figure comes from a forecast VW has made on regions of the world enacting more requirements, such as draft legislation being considered in China. Beyond VW’s diesel car emissions scandal, the German automaker sees itself as one of many global automakers facing stringent government emissions standards.

“It’s simple — the CO2 legislation in the various regions will mean every OEM is compelled to offer e-mobility,” said Thomas Lieber, VW brand’s head of complete vehicle development for electrified cars.

VW will need to ramp up its existing electric vehicles and roll out its planned models. In the U.S. market, VW has been selling the Audi A3 Plug In, VW e-Golf, and Porsche Cayenne S E-Hybrid. The Audi A3 plug-in hybrid had only sold 1,228 vehicles in the U.S. through April, while the all-electric e-Golf had only sold 938 and the Porsche Cayenne SE plug-in hybrid had only sold 799 units in that market, according to HybridCar’s Dashboard.

Globally, VW has three battery electric models available: the VW e-Golf and e-Up, and Audi R8 e-tron; and six plug-in hybrids: the VW Golf GTE, Passat GTE, Audi A3 Sportback e-tron, Q7 e-tron quattro, Porsche Panamera S E-Hybrid, and Cayenne S E-Hybrid.

By 2020, the automaker wants to expand its list of electric vehicles to 20 new battery electric and plug-in hybrid cars available. That will include two Tesla competitors – Porsche’s Mission E electric car and the Audi e-tron quattro, the brand’s first mass production EV.

The VW brand expects to build about 12,100 e-Golfs and 13,400 Golf GTEs this year. Including the e-Up that launched in 2013 and the most recent addition, the Passat GTE, total cumulative volumes of all VW brand electrified cars since the start of their respective production is expected to be about 103,000 by year end, according to Automotive News.

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VW executives say that it’s only taking the automaker an additional hour of work at its manufacturing lines in Wolfsburg, Germany, to produce electric versions of the Golf. That gives VW flexibility to increase supply and keep costs down if demand increases substantially.

VW could build as many as 75,000 EVs a year if demand rises and potentially many more, VW brand production chief Thomas Ulbrich told reporters at a press event in Wolfsburg. VW could quickly double the capacity in its three European plants that build EVs, he said.

Automotive News