According to media reports, Volkswagen has stated that there has been a slight decrease in demand for electric vehicles among US consumers. However, Pablo Di Si, the President and CEO of Volkswagen Group of America, expressed that Volkswagen will continue to pursue its electric vehicle plans.
In much of the US electric vehicle market, sales growth has slowed due to consumer dissatisfaction with the generally high prices of new cars, limited driving range, and insufficient charging infrastructure.
Di Si mentioned that electric vehicle sales remained robust throughout 2023, only starting to slow down in November and December. On March 13, during Volkswagen Group's annual media conference, he stated, "We are not questioning the future. The future is electric. We are just in a transition period now."
Di Si's perspective on electric vehicles aligns closely with comments made by Oliver Blume, the CEO of Volkswagen Group, during the conference. When asked about the market demand for electric vehicles, Blume stated that electric vehicles are "the trend of the future," but he also added, "We have enough flexibility to adapt to changes in different markets." In the US market, this flexibility includes selling plug-in hybrid electric vehicles (PHEVs).
Although PHEVs account for less than 2% of the US market share, they are increasingly prominent as a means for the automotive industry to reduce carbon emissions. General Motors is increasing PHEVs in its product lineup, contrary to its previous plans. Toyota, as a pioneer in hybrid vehicles, remains committed to developing a portfolio of hybrid electric vehicles.
As of now, Volkswagen has not started selling PHEVs in the US, but Di Si mentioned that the company is seriously studying and hopes to address this issue in the short term. He referenced the recent launch of the PHEV version of the Tiguan in Europe, a crossover vehicle based on Volkswagen Group's upgraded MQB platform with a pure electric range of up to 62 miles (approximately 99 kilometers).
Although he did not disclose when Volkswagen will launch a PHEV model in the US, he emphasized that the brand does not need to create new technology. He stated, "The important thing is that we already have the platform and technology. If we want, we can apply it to another SUV."
Arno Antlitz, Volkswagen Group's CFO and COO, mentioned that North America could be the company's fastest-growing market in 2024. Di Si stated that he believes the performance of the North American market, led by the US, will be stronger this year than in 2023, and he noted the potential for lower interest rates this year.
Volkswagen's electric vehicle lineup in the US will be strengthened this year, including the new ID.4 crossover and two new models: the ID.7 sedan and ID Buzz microbus. The ID.7, similar in size to the Passat, will be launched in the US in the third quarter of this year, while deliveries of the ID Buzz will begin before the end of the year. Both models will be produced in Germany.
Di Si mentioned that most of Volkswagen's investments will continue to focus on SUV models. He also reiterated that Volkswagen is still planning to launch a larger electric SUV. He stated that he does not expect the ID Buzz and ID.7 to achieve high sales in the US, but he referred to these two models as "halo cars."
