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The Volkswagen group has just announced its results for the first nine months of the year, and not all indicators are green. If their turnover increased by 16% to reach 235.1 billion euros, a sharp slowdown is being felt in the electric vehicle sector. More particularly in Europe, where orders have fallen sharply in one year. Enough to give cause for concern to the manufacturer regarding its fleet electrification strategies.
Figures that worry
While Volkswagen dreamed of an electric future and gradually phased out its thermal models, the realities on the ground are catching up with the fantasies. It was the financial director who indicated a drop of 50% in orders for the brand's electric vehicles in Europe. A possible sign that the market is decelerating.
However, EV deliveries increased by 45% globally, reaching the threshold of 531,500 units. A very decent score, in a context where Chinese competition is increasingly fierce. The problem is that the European electric market is where Volkswagen is most comfortable. The latter in fact represents 64% of the group's deliveries. With this drop, orders in Europe fell to 150,000 units.
Volkswagen's reaction
The key word: adaptation. The Wolfsburg company will therefore begin to adjust its strategies. Even if the third quarter of this year was synonymous with the start of a resumption of orders, the firm had to revise its ambitions downwards. First lever of action: lower its market share forecasts for its various electric vehicles. Initially, they were located at 11%, but now go from 8 to 10%.
Another strategic tool that the brand wishes to exploit is to pamper its modelsalready existing. Thus, the ID.4 SUV (which has already seen a polish in 2022) and the very similar ID.5 will experience updates to boost their sales. Volkswagen is also counting heavily on the arrival of their brand new sedan, the ID.7 to strengthen their range and increase their attractiveness.
Unlike certain manufacturers like Hyundai and Volvo who manage to achieve their objectives, the story is not the same for Volkswagen. Between the very fluctuating demand for electric cars, considerably high prices and competitive pressure, the group will have to play it smart to stay in the race.
- In Europe, orders for Volkswagen EVs fell by 50% in one year.
- However, the company's turnover continues to rise.
- The group must adapt its various commercial and industrial strategies to curb the phenomenon.
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