ArenaEV.com ArenaEV.com

Facebook

Twitter

Instagram

RSS

Settings
Units
Power
Standard
Consumption
Currency

Log in

Login

I forgot my password
Sign up
ADVERTISEMENTS

VW celebrates 1 millionth EV but the costs are piling up

  • Post your comment
  • Comments (11)

Max McDee, 01 May 2025

Volkswagen

Volkswagen celebrated a milestone this week at its Zwickau plant in Germany: the production of its one-millionth electric vehicle, an ID.3 GTX. This factory produces six different EVs for various brands under the VW Group umbrella. VW managed to double its EV sales in Europe during the first three months of 2025, suggesting a strong consumer interest in electric cars, but this success comes with big financial challenges for the automaker.

The sticky point is the profitability of electric vehicles compared to their gasoline-powered siblings. Building EVs is currently more expensive, resulting in smaller profit margins for Volkswagen. As electric cars constitute an increasing portion of the company's sales – one in every five VW Group vehicles sold between January and March was electric – the overall profitability has decreased, dropping the margin to 4%.

VW celebrates 1 millionth EV but the costs are piling up

And yet, despite the financial headwinds, Volkswagen sees a promising future with upcoming, more affordable electric models. The ID.2 is planned for release in 2026 with a target price of around $27,700, and is expected to improve profit margins. This compact EV, along with its SUV sibling and related vehicles from Cupra (Raval) and Skoda (Epiq), will use the new, cost-effective front-wheel drive version of Volkswagen's MEB platform. These vehicles will be built in Spain and could be among the first Western-produced EVs to achieve profit margins comparable to traditional internal combustion engine cars.

VW's latest financial figures expose the impact of the EV transition. The company announced that its earnings before tax fell by 40 percent to $3.44 billion in the first quarter of the year, even though overall deliveries grew by 1.4 percent. The company's finance chief, Arno Antlitz, blamed this decline partly on the growing share of electric vehicles in their sales mix.

VW celebrates 1 millionth EV but the costs are piling up

The potential tariffs in the United States are complicating Volkswagen's financial outlook even more. VW, with its Audi and Porsche brands, lacks US-based production facilities, and so it faces exposure to these tariffs and has already warned its investors to prepare for a less favorable financial year than planned.

Source

This article contains localized units and prices. Change settings.
Your choice
Related articles
  • Volkswagen ID.2all's interior revealed Volkswagen ID.2all's interior revealed
  • US electric car prices set to climb as new 25% tariffs shake the market US electric car prices set to climb as new 25% tariffs shake the market
  • Volkswagen ID.7 Pro review Volkswagen ID.7 Pro review
  • 2025 Volkswagen ID.7 Tourer interior, design and features review 2025 Volkswagen ID.7 Tourer interior, design and features review

Reader comments

?
  • Anonymous
  • rK8
  • 08 May 2025

MGES5 costs less than MG ZS. Around $2k lesser

  • Reply
?
  • Anonymous
  • rK8
  • 08 May 2025

Their platform is "heavy" because it has more parts and is designed for ICE not EVs. Like I said you need 800V. It impacts motor efficiency as well.

  • Reply
?
  • Anonymous
  • rK8
  • 08 May 2025

Its not about decent EVs. Its about profitable EVs. Profitable EVs need 1. Fewer parts = 800V architecture. 2. Speedy manufacturing to keep up with demand= Gigacasting. 3. Non glitchy software = Fluid dashboard interface. VW has been making decent EV...

  • Reply
  • Read all comments
  • Post your comment
Total reader comments: 11

  • Home
  • Compare
  • News
  • Terms
  • Reviews
  • About us
  • Tesla
  • Volkswagen
  • Audi
  • Porsche
  • BMW
  • Mercedes
  • Hyundai
  • Kia
  • Genesis
  • Renault
  • Nissan
  • Ford
  • Volvo
  • Polestar
  • Jaguar
  • Toyota
  • Mazda
  • Mini
  • MG
  • Vinfast
  • Lucid
  • Rivian
  • Cadillac
  • Chevrolet
  • GMC
  • Subaru
  • Nio
  • Xpeng
  • BYD
  • [..]

EV finder

ADVERTISEMENTS

Latest models

  • ModelJeep
    Compass
  • ModelSubaru
    Solterra
  • ModelSkoda
    Elroq RS
  • ModelMG
    MGS5 EV SE Long Range
  • ModelMercedes
    CLA 350 4MATIC
  • ModelVolvo
    ES90 Twin Motor Performance

Featured

  • Here's a breakdown of the cost of an EV battery Here's a breakdown of the cost of an EV battery
  • EV vs ICE - differences and similarities EV vs ICE - differences and similarities
  • Xpeng P7 AWD quick review and drive Xpeng P7 AWD quick review and drive
  • Polestar 3 edges Tesla Model 3 out in 24 vehicle winter range test Polestar 3 edges Tesla Model 3 out in 24 vehicle winter range test
  • Audi Q8 55 e-tron alternatives - BMW iX xDrive50 and Polestar 3 LR Audi Q8 55 e-tron alternatives - BMW iX xDrive50 and Polestar 3 LR
ADVERTISEMENTS

Reviews

  • Mercedes-Benz EQS 450+ review Mercedes-Benz EQS 450+ review
  • Mini Countryman SE ALL4 review Mini Countryman SE ALL4 review
  • BMW iX2 xDrive30 review BMW iX2 xDrive30 review
  • BMW i7 xDrive60 review BMW i7 xDrive60 review

Home News Compare About us RSS feed Facebook Twitter Instagram

© 2022-2025 ArenaEV.com Mobile version EV Finder Glossary Privacy Terms of use

From the team behind
GSMArena.com