Growing EV demand helps Volkswagen reach half a million ID deliveries one year early
As legacy automaker Volkswagen looks to electrify its entire lineup of vehicles over the next decade, it is touting accelerated progress today by reaching a milestone of 500,000 EV deliveries a year early. With ten new EV models planned for deliveries by 2026, Volkswagen is capitalizing off growing EV demand with hopes to further accelerate its electrification strategy around the globe.
Since announcing a decade-plus long strategy to completely phase out combustion vehicle sales, Volkswagen Group has continued to demonstrate progress in achieving its goals, despite recent supply chain constraints around the globe.
Last fall, we reported Volkswagen was expanding EV sales and deliveries at a staggering pace, reporting YOY growth well over 100%. This trend has continued through 2022 as BEV demand continues to soar alongside the number of all-electric VW models available.
As its EV deliveries continue to grow, some analysts have predicted that Volkswagen will eventually surpass market leader Tesla in sales as early as 2024. Now, just over two years after beginning deliveries of its ID.3 EV, Volkswagen has surpassed its 500,000 unit benchmark.
Volkswagen deliveries represent a growing EV appetite
The German automaker shared news of its latest accomplishment in a press release today, providing further evidence that consumers around the world are transitioning to EVs more quickly, whether those vehicles are donning the VW badge or not.
While there’s certainly a booming demand for zero-emissions vehicles around the globe, the VW name is one often being sought out by consumers. In addition to 500,000 deliveries already completed, Volkswagen is reporting another 135,000 EVs in the order bank – a 65% increase compared to 2021. VW board member for sales, marketing and after sales Imelda Labbé spoke:
Delivery of half a million ID.s confirms that the Volkswagen models are being well-received by our customers – all over the world. We are on the right track with our electric mobility campaign and our success story continues. Our focus is unchanged – we want to make Volkswagen the most desirable brand for sustainable mobility. We are doing our utmost to deliver the roughly 135,000 ID.s on order to our customers as quickly as possible. However, due to the persistently strained situation as regards the supply of parts we are repeatedly having to adjust production.
Like many automakers, Volkswagen has felt the affects of supply chain issues, inflation, and new terms in the US pertaining to federal tax credits under the Inflation Reduction Act. Still, the automaker has pivoted its strategy, named a new CEO, and continues to work toward deliveries of ten new EVs by 2026. This will include an entry-level EV priced around $25,000 and the recently covered Aero B sedan.
Looking ahead, Volkswagen intends to only sell EVs in Europe by 2033 and have 50% of all sales and deliveries be electric in the US and China by that time as well. Its ID.4 SUV is currently being assembled in Chattanooga, Tennessee.
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Tesla has started to offer discounted financing on Cybertruck as the electric pickup truck undoubtedly turns out to be a flop.
Tesla claimed over 1 million reservations for the Cybertruck, and CEO Elon Musk said he could see Tesla producing 500,000 units per year.
However, that was before Tesla announced that the production version would be much more expensive and have a shorter range than what was initially announced.
The Cybertruck has now been in production for a year and a half, and it looks like Tesla would be lucky to sell about 10% of Musk’s goal of 500,000 units.
The automaker doesn’t report Cybertruck sales, but it is estimated that Tesla delivered roughly 40,000 Cybertrucks in 2024, and it is expected to have even more issues selling the truck this year.
Tesla has taken several steps to help sales.
We reported that Tesla launched Cybertruck leases to help move vehicles. The company is even still tucked with “Foundations Series” Cybertrucks, and we found out that Tesla buffed “Foundations Series” badges out of some trucks to sell them as cheaper regular Cybertrucks.
For the remaining “Foundations Series,” which there still are despite Tesla switching to regular Cybertruck production in October, Tesla has even offered free Supercharging for life.
Now, Tesla is stepping up its game, and it is offering discounted financing on new Cybertruck orders:
Tesla announced 1.99% APR for a limited time:
1.99% APR available for a limited time for well-qualified buyers
WIthout the “promotion”, the rate for excellent credit is 5.84%.
While Tesla is discounting the rates, it is not discounting them as much as for new Model 3 orders.
We reported earlier this week that Tesla offers 0% and 0.99% with $0 down on new Model 3 orders in the US until the end of the quarter.
Electrek’s Take
It is very possible that Tesla can’t sell more than 10,000 Cybertrucks this quarter, which would extrapolate to 40,000 units per year or less than 10% of what Elon said he would see Tesla delivering.
Now, the cheaper single motor Cybertruck should help, but by how much? It could bring Tesla to 20-30% of the volume Elon saw possible?
I think it’s fairly clear that the Cybertruck is a flop.
Tesla launched a single new vehicle in the last 5 years and it is a flop.
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Environment
Toyota launched its cheapest EV in China and it crashed the server starting at just $15,000
Toyota looks to grab a bigger share of the world’s largest EV market as it takes aim at BYD and other low-cost leaders. On Thursday, Toyota launched its cheapest EV in China, the bZ3X, starting at roughly $15,000. The new electric SUV crashed the server with over 10,000 orders in an hour.
Meet Toyota’s cheapest EV in China, the bZ3X
The bz3X is Toyota’s “first 100,000 yuan-level pure electric SUV” in China and its cheapest EV to hit the market so far.
Toyota’s Chinese joint venture, GAC-Toyota officially launched the “Bozhi 3X,” or bZ3X for short, in China on March 6. Shortly after, the company said orders for its new electric SUV were “so popular that the server crashed” after revealing prices start at just over $15,000 (109,800 yuan).
After securing over 10,000 orders in just one hour, Toyota boasted again that “the server is overwhelmed.” The launch comes after blind pre-orders opened in December, starting at just under $14,000 (100,000 yuan).
The bZ3X is available in two versions, with or without its full-scenario smart driving tech. The non-smart tech model starts at 109,800 yuan ($15,000) with five trim options while the smart driving model starts at 149,800 yuan ($20,500).
For 159,800 yuan ($22,000), the range-topping “610 Max” trim provides up to 610 km (379 miles) CLTC range from a 67.92 kWh LFP battery. The base “430 Air” gets up to 430 km (267 miles) from a 50.03 kWh LFP battery pack.
Toyota said the interior provides “a mobile space that is comfortable as home,” with front and rear seats that can fold down to provide nearly 10 feet (3 meters) of space.
Inside, the electric SUV has a 14.6″ infotainment screen with voice recognition and an 8.8″ driver display. It also includes a two-spoke multi-function steering wheel.
Toyota’s new bZ3X is its first vehicle with the Momenta 5.0 Intelligent Driving System. Powered by NVIDIA Drive AGX Orin X, it comes with 25 ADAS features, such as parallel parking, remote control parking, high-speed pilot, light traffic assist, and blind spot monitoring.
GAC-Toyota claimed it will be “one of the first automakers in the world to realize a one-stage end-to-end intelligent driving model.” With human-like intelligence, the vehicle “gets smarter and better with use.”
At 4,600 mm long, 1,875 mm wide, and 1,645 mm tall, Toyota’s cheapest EV in China is about the size of BYD’s Yuan Plus (Atto 3) at 4,455 mm long, 1,875 mm wide, and 1,615 mm tall. Starting at 115,800 yuan ($16,000), Toyota’s new bZ3X slightly undercuts BYD’s electric SUV.
What do you think of Toyota’s new electric SUV? Would you buy one for around $15,000? We’ll keep dreaming.
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