Volkswagen bets on low-cost electric vehicles to compete with Chinese automakers.

If you can't beat them, then join them, right? Volkswagen is betting on its new generation of smaller, more affordable electric vehicle lineup in an attempt to compete with BYD and other Chinese car manufacturers.

For now, it seems that this strategy is working—at least in Europe. Martin Sandt ( Martin Sander ), the head of sales at Volkswagen Group, stated that in their home market, "there is a significant acceleration in the sales of pure electric vehicles."

Sander said that this wave of car-buying enthusiasm is driven by high oil prices and its new range of entry-level electric vehicles.

Since the Electric Urban Car Family of this group started mass production in June, it has received nearly 150,000 orders.

Volkswagen Group delivered 209,100 electric vehicles in Europe in the third quarter, a year-on-year increase of 20%; electric vehicle orders also increased by 60% year-on-year. As of the end of September, Volkswagen Group had delivered a total of 586,100 pure electric vehicles in Europe, a year-on-year increase of 12%.

Last month, German automotive news website Automobilwoche reported that Volkswagen is adjusting the production at several factories to meet higher-than-expected demand for electric vehicles.

In Germany – Volkswagen’s home market and also the heart of the European automotive industry – orders for pure electric vehicles have now surpassed those for internal combustion engine ( ICE ) models.

The VW ID model, equipped with a 37-kilowatt-hour battery, has a starting price of 24,995 euros (approximately 29,000 US dollars), and has a range of 334 kilometers (207 miles). The Cross is the electric counterpart to Volkswagen's best-selling model T-Cross in Europe, with a starting price of 27,995 euros (approximately 32,000 US dollars) in Germany.

However, despite gaining more attention in the domestic market, Volkswagen Group's total electric vehicle deliveries in the first nine months of 2026 still decreased by 5.4%.

The group delivered 678,700 pure electric vehicles in the first nine months of 2026, which is 5.4% lower than the 717,700 vehicles delivered during the same period last year.

As of the end of September, Volkswagen's electric vehicle sales in the United States and China decreased by 78.4% and 42.5%, respectively.

Sander stated, "The sharp decline in the overall Chinese market remains a challenge for the entire industry," and added that the group's "newly developed local electric vehicle models are beginning to have an impact."

Compared to the same period last year, Volkswagen delivered approximately 30% more electrified vehicles (including plug-in hybrid and extended-range electric vehicles) in China during the third quarter. However, as of the end of September, Volkswagen had only delivered 48,900 electric vehicles, which is a 42.5% decrease compared to the same period in 2025.

Volkswagen stated that in the United States, with the expiration of the $7,500 federal tax credit and the imposition of additional import tariffs, the overall electric vehicle market has seen a significant decline.

As of the end of September, Volkswagen Group delivered only 14,900 pure electric vehicles in the United States, a decrease of 78.4% compared to 68,700 vehicles in the same period last year.

Volkswagen stopped producing ID.4 in the United States earlier this year. ID.4 (as well as ID.5 for the European market) will be replaced by ID. Tiguan is part of Volkswagen's next generation of electric vehicles and is scheduled to be launched at the beginning of 2027.

Overall, Volkswagen Group delivered 6.01 million vehicles equipped with various powertrain systems in the first nine months of 2026, a year-on-year decrease of 9%.

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Top comment, author Jack

There is still considerable room for growth in the sales of electric vehicles in Europe, but of course, some of this growth will come at the expense of the sales of internal combustion engine vehicles. In North America or China, it is much more difficult to see a positive development path. I'm glad to see that they have updated their electric vehicle lineup in a way that has resonated with customers.

Volkswagen's new entry-level electric vehicles have had a good start in Europe, but is that enough to overcome the fierce competition in China's electric vehicle market?

As China is flooded with low-cost domestic electric vehicles, BYD and other leading brands are shifting their focus to overseas markets, such as Europe, Latin America, and Southeast Asia.

The public still faces tough challenges. Last month, the company's supervisory board approved the "2030 Future Plan," which calls for reducing the global workforce by up to 100,000 people, closing factories, and streamlining the car model lineup in order to cut costs.

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