Volkswagen will have to survive until 2026 without any new electric cars

The Volkswagen brand will have no new additions to its electric car range this year, extending a difficult period for the German automaking giant

It’s been more than four years since Volkswagen launched the all-electric ID.3 and ID.4. When they arrived, many thought these two cars could give Tesla serious competition. However, things are not going to work out that way, and 2025 will be another difficult year for Volkswagen EVs.

Just like in 2024, the German brand will not launch a new electric car this year. In fact, the latest addition to its electric lineup is the ID.7 sedan, which debuts in the third quarter of 2023. Looking ahead, VW’s next big version – the long-awaited ID.2 – won’t be coming to select markets before 2026, and North America is unlikely to be one of them. Priced under €25,000 (approximately $26,000), the ID.2 is expected to offer interior space comparable to a Golf while remaining as compact and affordable as the smaller Polo.

Read: You mean range anxiety? VW ID.7 can travel 585 miles on a single charge

“In the next year or so, Volkswagen will be forced to sell old technology to new customers,” said German auto analyst Matthias Schmidt. Bloomberg. “That would be difficult.”

This has been difficult. Volkswagen is facing headwinds in electric vehicle sales in key markets such as the United States, Europe and China. In Europe, subsidy cuts in key areas such as Germany have dampened demand. Meanwhile, the automaker is losing ground to nimble local rivals in China, a market crucial to Volkswagen’s long-term electric vehicle ambitions. Even luxury products such as the Audi Q8 e-tron and Porsche Taycan have failed to gain traction in a market increasingly dominated by more affordable mass-market electric vehicles from Chinese brands.

Betting on China

A key part of Volkswagen’s push into China’s electric vehicle market is its new partnership with Xpeng Motors. The two companies are developing a joint electrical and electronics (E&E) architecture that will power all electric vehicles produced by Volkswagen in China. The first models to be launched through the partnership will be launched in 2026 and include two mid-range Volkswagen vehicles, one of which is an SUV. Volkswagen Group hopes to increase annual sales in China to 4 million vehicles by 2030 from 2.93 million vehicles last year.

Volkswagen spokesman Stefan Voswinkel added: “Launching new models is one solution, but maintaining our broad product portfolio is equally important.” “We have worked hard over the past few years to have very good models, high-performance software and high quality ”

While these models may help Volkswagen grow in China, they won’t be sold elsewhere. In the United States, the Volkswagen Group is working on launching the Scout Terra and Traveler. However, both models will be sold exclusively through a direct sales model, bypassing traditional VW dealers, a decision that has prompted a backlash from dealers in California. Despite the controversy, electric pickup trucks and SUVs still have a lot of potential to resonate with American buyers. Still, don’t get too excited just yet, as production isn’t expected to begin until 2027.