Volkswagen plans to sell 25 BEV models in US by 2030 that qualify for full $7,500 tax credit
German automaker Volkswagen Group is looking to more than double its current share of the US market by prioritizing EV production in North America. By adhering to new terms laid out in the Biden Administration’s Inflation Reduction Act, Volkswagen intends to deliver at least 25 all-electric models over the next seven years that will qualify for the entire $7,500 federal tax credit.
Volkswagen Group may not be leading the all-electric charge in terms of technology, especially software, but the legacy automaker is still making moves almost daily to pivot toward varietal BEV production in order to deliver vehicles that are affordable and enticing to consumers. Despite other European automakers (including Porsche) splitting hairs over the nonexistent demand for e-fuels, Volkswagen Group continues to embrace an all-electric future, with the goal of gaining a larger share of the global market.
A huge chunk of that market lies in North America, where the automaker currently has a production footprint that is home to its ID.4 EV. That factory will soon be joined by a new US-based battery plant to support local EV production and help Volkswagen’s future models qualify for federal tax credits now that the US Department of Treasury has shared its battery guidance criteria.
Additionally, Volkswagen Group recently announced South Carolina as the new home of its next production facility, where its Scout sub-brand EVs will be built. Fellow marque Audi could soon join the assembly lines at one of those US factories as well, providing further evidence of North America sitting dead center on the Group’s office dartboard.
Volkswagen Group currently has a grip over roughly 4% of the US market today, but it looks to boost that number to 10% by the end of the decade. In order to do so, Volkswagen America’s CEO shared the company’s plans for broader availability stateside, utilizing federal tax credit opportunities as its catalyst.
Volkswagen goes all in on US production, federal tax credit
Volkswagen may be putting the pieces in place to gather a larger share of the US market, but it remains a tall task – one that the legacy automaker has taken on in the past with little success. The Volkswagen passenger car brand currently holds a meager 1.8% of the US market today but hopes to reach 5% by 2030.
The overall Group hopes to achieve the aforementioned target of 10% in the same period with the help of some of its more popular, premium marques, like Audi and Porsche. Volkswagen has a head start on some of its competitors with established EV production in the US already but will need to expand its assembly lines to models beyond its namesake brand in order to have a chance.
Those plans already include a $7 billion investment in US production, which will help Volkswagen begin production of its ID.Buzz electric van in 2024. This year alone, Volkswagen has already introduced plans for several more affordable EV models to the public but has not declared which, if any, will be assembled in the US.
It appears that plenty more are coming stateside, however. According to Volkswagen Group of America CEO Paulo Di Si, the automaker plans to sell 25 BEV models in the US by 2030 – all of which should qualify for the Inflation Reduction Act’s full $7,500 federal tax credit. That means their assembly and battery components must operate in North America or through a US free trade partner. Per Di Si in a recent Bloomberg Television interview:
We have a great opportunity in the US. I believe this is the right time and the right place.
To avoid similar follies from past attempts at US market saturation, Volkswagen Group is hiring designers and engineers to cater its future EVs specifically toward US consumers. As a result of emissions scandals and software issues, Volkswagen’s popularity has dwindled in the US, although the ID.4 has gained a strong following, and its upcoming ID electric van continues to generate… buzz.
Even Di Si admits the automaker’s US market targets are going to be tough to hit, but the CEO remains confident in the Group’s US plans.
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The average US new car price crossed the $50,000 mark for the first time in September, according to new estimates from Kelley Blue Book (KBB). Prices have been climbing steadily for over a year, and the pace picked up this summer – but that hasn’t stopped Americans from buying.
KBB says September’s record average transaction price (ATP) was partly driven by luxury models and EVs, which pushed the market into record territory. EVs made up an estimated 11.6% of all new vehicles sold last month, which is also a record high. The average EV sold for $58,124 – up 3.5% from August’s adjusted figure.
In Q3, EV sales hit another milestone: 437,487 EVs were sold in the US, giving them a 10.5% market share. That’s nearly a 30% jump from the same period last year. With government-backed EV incentives expiring at the end of September, many buyers hurried to lock in their purchases.
Year-over-year, the average EV transaction price is basically flat, down just 0.4%. Incentives averaged 15.3% of ATP in September, or about $8,900 per vehicle – slightly lower than August but higher than a year ago, when incentives averaged 13%.
Tesla, which continues to dominate the EV market, saw an average ATP of $54,138 in September. That’s a slight dip from August and down 6.8% from a year earlier. With Tesla recently introducing the new Standard versions of the Model 3 and Model Y, KBB expects average prices across the segment to fall in the coming months. Erin Keating, executive analyst at Cox Automotive, thinks the market is “ripe for disruption.”
“It is important to remember that the new-vehicle market is inflationary. Prices go up over time, and today’s market is certainly reminding us of that,” said Keating. “The $20,000 vehicle is now mostly extinct, and many price-conscious buyers are sidelined or cruising in the used-vehicle market. Tariffs have introduced new cost pressure to the business, but the pricing story in September was mostly driven by the healthy mix of EVs and higher-end vehicles pushing the new-vehicle ATP into uncharted territory.”
Read more: US EV sales smash records in August as Tesla loses ground
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It’s official. The Genesis GV70 is about to get two new electrified options, including its first hybrid and extended-range (EREV) versions.
Two new Genesis GV70 electrified SUVs are coming soon
Genesis is turning 10, and it’s planning to go all out. Hyundai gave us a look at what’s coming last month during its CEO Investor Day.
The plans include Genesis expanding with new electrified powertrain offerings, including its first hybrid and extended-range electric vehicles.
Up until now, the luxury automaker has focused on fully electric (EV) or internal combustion engine (ICE) vehicles. By expanding into different electrified powertrains, Genesis hopes to attract new buyers to the brand while grabbing a bigger share of the luxury market.
Genesis will launch its first hybrid in 2026, the GV80. We knew the GV70 EREV would follow shortly after, but now it’s been confirmed that a hybrid model is also set to join the lineup.
We got our first look at the Genesis GV70 EREV last week. The vehicle was parked in South Korea and appeared to be nearly identical to the current model. Aside from a tag labeling it an EREV and a massive muffler at the back, it looks about the same as the Electrified GV70.
Now, we are finally getting a glimpse of the Hybrid version. The Genesis GV70 Hybrid was also caught by HealerTV in South Korea, this time with an HEV tag.
Like the EREV, the GV70 Hybrid is still covered in camouflage, but this time, you can see the vehicle has the brand’s sport package. The optional package adds sporty exterior and interior elements, including chrome around the Crest Grille and window trim.
The vehicle is still a prototype, so it could change by the time it reaches production form. However, as the reporter points out, the GV70 Hybrid could bring a unique new look to the GV70 series.
On the side of the tire, the letters “FL” are printed, which is typically shown on Hyundai vehicles set to receive a facelift.
Genesis is expected to launch the GV70 EREV in late 2026, followed by the Hybrid version sometime in early 2027.
According to Hyundai, the EREV will have a combined driving range of over 1,000 km (620 miles). Although it still runs on an electric motor, it will feature a small gas motor that acts as a generator to charge the battery and extend the driving range.
Genesis is betting on new electrified vehicles, including EVs, hybrids, and EREVs, to drive growth. The luxury brand aims to expand into up to 20 new European markets while gaining a bigger share of the US market. By 2030, Genesis aims to sell 350,000 vehicles.
Although it had planned to only offer fully electric vehicles from 2030, Genesis backed off on its commitment. Instead, it will use hybrids and EREVs as a bridge to an all-electric future.
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Duracell, the iconic US battery brand that started in the 1920s, is crossing the Atlantic to launch its first-ever EV fast charging network, Duracell E-Charge, in the UK.
Sales of gas and diesel cars will end by 2030 in the UK, which is driving EV sales and charging infrastructure growth. With more than £200 million ($266 million) in planned investment over the next decade, Duracell E-Charge is getting on the bandwagon with an aim to improve the fast charging experience.
Duracell has licensed its new network to Elektra Charge, a charge point operator set up to run the Duracell E-Charge network. The EV Network (EVN), one of the UK’s top charging infrastructure developers, will fund and build the charging hubs.
“The need for faster, more reliable charging to keep pace with EV adoption is clear,” said Reza Shaybani, CEO of The EV Network. “Duracell E-Charge is a direct response to that challenge.”
Duracell’s EV fast charging network will feature 400 kW ultra-fast chargers where drivers can pay via app, contactless, or plug-and-go. Each site will have intuitive interfaces, clear signage, and 24/7 support.
The first six Duracell E-Charge sites will come online in 2025. The Sunday Times reported that Duracell plans to grow its charging network to at least 100 charging stations with at least 500 charging points by 2030. The hubs will be strategically located along major motorways, near retail and hospitality venues, and at key city gateways.
“Charging your car should be as simple as changing the batteries in your remote,” said Mark Bloxham, managing director of Duracell E-Charge. “Plug. Play. Go.”
Electrek’s Take
I asked Duracell whether it had plans to launch Duracell E-Charge in the US, and I’ll update this story if I hear back. But if you want to know why this American legacy company launched its first DC fast charging network in the UK instead of the US, it’s a simple answer. Business-friendly, stable government policy.
Read more: InstaVolt is using GPS tracking to catch thieves stealing its EV charging cables
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Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here.
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