Volkswagen Expects To Make Serious Profits From EVs Very Soon

byJarryd Neves Electric Vehicles /5 Comments

The Wolfsburg-based brand is poised for greatness in the electric vehicle sphere.

Volkswagen is pulling no punches when it comes to electromobility and recentlyteased an affordable, battery-powered city carto bring EVs to the masses. Currently, US buyers only have theID.4to choose from but that's set to change with thearrival of the retro-styled ID.Buzzminivan. This attack on the EV segment is set to pay off sooner than expected, with company CEO Herbert Diess noting EVs will be as profitable as ICE-powered cars very shortly.

At the company's annual shareholder meeting, Diess remarked that VW is anticipating "the e-mobility business will be as profitable as the combustion-engine business earlier than planned...through good crisis management, we are financially robust and have strengthened our resilience."

Previously, the company expected this to take between two and three years. The group delivered 452,000 electric vehicles to customers all over the world in 2021.

Volkswagen

Volkswagen

That's not to say the German automaker hasn't had its fair share of challenges. Strong global demand for its electric vehicles has put Volkswagen in a peculiar predicament. The brand has, effectively, sold out for the rest of the yearpushing orders into 2023. It hasn't been the easiest time for the auto industry, with supply issues, the chip shortage, and the crisis in Ukraine exacerbating the challenging climate.

Diess has spoken openly about this, warning there may be dire consequences not only for the sector but Europe's economy too. He remainsrealistic about the future of motoring, too. Speaking at the Financial Times' Future of the Car summit, the CEO said there are several problems that need to be cleared before the road to electromobility is a smooth one. Citing concerns around EV infrastructure, he also added that "it takes huge investment and time to achieve."

Volkswagen

Volkswagen

Still, Volkswagen remains positive and has set itself numerous ambitious goals; Diess himself is aiming for 50-60% of the group's sales to be electric by the start of the new decade. This can only be achieved by electrifying the entire lineup and introducing new models which will appeal to eco-minded consumers. To that end, Germany's biggest carmaker isreviving the iconic Scout brandas a reimagined purveyor of electric SUVs and trucks.

Other electric products under the Volkswagen umbrella include a bevy of battery-powered Audis, the Porsche Taycan, and any number of Skoda, Seat, and Cupra models not available in the United States. There are several additional vehicles up the automaker's sleeve, though, including the Model 3-rivalling Aero B sedan. With lofty aspirations of dethroning Tesla, it looks like VW has plenty of work ahead of itself.