Azernews.Az

By Alimat Aliyeva

Volkswagen AG's global deliveries rose in the first quarter as Europe's biggest automaker benefited from surging demand for its electric vehicles, Azernews reports.

Global deliveries climbed 1.4% to 2.13 million units, supported by growth in Europe and the Americas. However, Volkswagen continues to struggle in China, where its deliveries fell by 7.1%.

Electric vehicles (EVs) represented a bright spot for the company, with group EV sales soaring 59% to 216,800 units. Volkswagen is among the manufacturers benefiting from a shift in consumer sentiment, particularly in response to Tesla Inc.'s increasing political involvement in Europe and its ties to former US President Donald Trump’s administration. This has led some drivers to seek alternatives to Tesla's offerings.

Volkswagen's EV sales more than doubled in Europe and jumped 51% in the US, two of Tesla’s key markets. However, in China, the company faced a significant decline, with sales dropping 37% as local competitors, particularly BYD Co., continue to dominate the rapidly growing electric vehicle market.

The outlook for Volkswagen and its export-oriented German peers is challenging. Luxury brands such as Audi, Porsche, and Mercedes-Benz are expected to be significantly impacted by the consequences of Trump’s tariffs, which came into effect on Wednesday. These tariffs could increase costs for German automakers and reduce their competitiveness in global markets, particularly in the US.

Despite the hurdles, Volkswagen remains committed to its electrification strategy and continues to invest heavily in EV technology and infrastructure. The company is banking on a broadening of its electric vehicle lineup, including new models like the ID.4 and ID. Buzz, to strengthen its position in key markets and challenge Tesla’s dominance. However, as competition in the EV space intensifies, especially from Chinese manufacturers, Volkswagen will need to navigate complex geopolitical and market dynamics to maintain its growth trajectory.