The auto industry as a whole is shifting toward vehicle electrification at a rapid rate. The rapid electrification of vehicles from major automakers on the mainstream auto market is due primarily to concerns regarding CO2 emissions and dangerous climate change as well as rising demand from drivers for all-electric vehicles.
In 2010, only about 17,000 all-electric vehicles were on the road worldwide. In 2019, more than seven million EVs were on the roads around the globe. The global all-electric vehicle stock and worldwide EV sales have skyrocketed over the past decade and are expected to continue to increase even more dramatically throughout the 2020s.
Volkswagen is one of many major automakers to announce lofty goals for the electrification of their vehicle lineup over the next several years. However, VW is expected to be one of the most successful automakers in the all-electric vehicle industry within the next decade.
Keep reading to learn more about how Volkswagen is committing itself to the electrification of their vehicles and the improvement of the accessibility of EVs worldwide.
VW’s All-Electric Goals for the 2020s
Based on current trends in the worldwide auto industry and the increasingly heightened demand for all-electric vehicles among drivers, Volkswagen has opted to dramatically accelerate their plans for electrifying the vehicles in their lineup.
By the year 2030, Volkswagen expects more than 70% of their sales to be all-electric vehicles in Europe and more than 50% of their sales to be all-electric vehicle models in China and the United States within that same timeframe. This is a dramatic increase from Volkswagen’s previous goals to make all-electric vehicle sales account for 35% of their vehicle sales by the year 2030.
In order to meet these goals, Volkswagen plans to offer at least one all-electric or hybrid version of every vehicle in their lineup. Considering the fact that Volkswagen is the automaker behind multiple auto brands—including Audi, Bentley, Bugatti, Lamborghini, and Porsche—this means that VW will offer all-electric or hybrid versions of more than 300 different vehicle models by 2030. Volkswagen aims to produce one million all-electric vehicles by 2023 and 1.5 million EVs by 2025.
Volkswagen’s surprising acceleration of their plans for the electrification of the vehicles in their lineup is a result of mounting pressure on major brands in the auto industry to step up their all-electric vehicle game in order to comply with tightening CO2 emission standards for vehicles and meet the ever-increasing demand for EVs around the world.
Volkswagen vs. Tesla
Tesla is currently renowned as the most popular major automaker in the all-electric vehicle industry and is indeed currently the leading EV manufacturer in the world. Their vehicle lineup consists only of all-electric vehicles that must be plugged in to be charged.
One of the reasons why Tesla has been able to successfully sell only all-electric vehicles is that Tesla has built more than 3,000 charging stations around the world for their all-electric vehicles. This has dramatically increased the accessibility of vehicle charging for Tesla drivers, which has made Tesla’s vehicles much more appealing and practical for more drivers.
Tesla also owns four fully operational facilities where their vehicles and vehicle components—including the batteries for the all-electric models in their lineup—are made. These manufacturing facilities allow Tesla to ensure that they are able to produce the vehicle components needed to build Tesla models as well as further develop their battery cell technology out of their own facilities.
Volkswagen is following in Tesla’s footsteps and hopes to usurp Tesla’s title as the leading automaker in the all-electric vehicle industry in the near future. Volkswagen aims to expand its global charging network by building more than 1,000 new fast chargers throughout North America in 2021 alone. They also plan to build six new battery factories around the world in the near future to help them produce the high number of all-electric vehicles they plan to release on the mainstream auto market over the next few years.
Beyond that, VW will also invest approximately $16 billion toward e-mobility, and the hybridization and digitalization of new vehicles by the year 2025. Volkswagen also plans to develop their own unified battery cell in order to slash EV prices in half and increase the accessibility of all-electric vehicles for more drivers.
Only time will tell how Volkswagen fares against Tesla and other competitors in the all-electric vehicle industry, but their plans and goals point toward VW becoming a major player among all-electric automakers in the very near future.