Volkswagen has begun reallocating its production capacity after demand for some of its new electric cars became higher than demand for petrol and diesel models in Germany. According to information reported by Electrek, citing Automobilwoche, orders for electric cars exceeded orders for internal-combustion vehicles in the company’s home market, prompting it to adjust production plans at several plants.
At the Wolfsburg plant, which produces the fuel-powered Golf and Tiguan, Volkswagen cancelled the additional shifts it had planned. Annual production is therefore expected to settle at around 580,000 cars, rather than the 600,000 cars or more the company had previously targeted, as demand for petrol- and diesel-powered cars was no longer sufficient to justify increasing production.
Electric plants prepare for a higher pace
By contrast, the Emden and Zwickau facilities are expected to operate at a higher capacity, with at least two shifts being added. The strong performance of the ID.3 Neo, an updated version of the electric hatchback, is contributing to higher utilisation of the Zwickau plant since the car was launched in Europe in April.
However, the most prominent model in the current wave of demand is the ID. Polo, the first member of Volkswagen’s new family of more affordable electric cars. The number of orders has exceeded 40,000 in Europe since its launch at the end of April. A separate report cited by Automobilwoche also stated that all versions had sold out and that buyers faced a waiting period of at least ten months.
The ID. Polo Trend version, equipped with a 37-kilowatt-hour battery, starts at 24,995 euros and offers a range of 334 kilometres according to the WLTP standard. Volkswagen is working to increase production at the Martorell plant in Spain, where the car is manufactured, alongside the Skoda Epiq and Cupra Raval, which share the same platform and are also facing strong demand.
What is changing in practice?
The development is not limited to the success of a single model; it reflects a shift in the distribution of demand within Volkswagen’s lineup. Lower-priced compact electric cars have become capable of attracting buyers who previously relied on internal-combustion vehicles, while production capacity is being directed towards models showing stronger demand indicators.
Positive indicators also include the electric ID. Cross, the counterpart to Volkswagen’s best-selling T-Cross in Europe. Orders for it opened in Germany during July, with a starting price of 27,995 euros, and the company recorded strong initial demand, according to internal sources cited by the report.
Order success does not eliminate restructuring challenges
Despite these results, Volkswagen continues to face operational and competitive challenges. Earlier in September, its supervisory board approved the Future Plan 2030, which includes a potential reduction of up to 100,000 jobs worldwide, plant closures and a reduction in the number of models with the aim of cutting costs.
The company is also facing increasing competition from Chinese companies such as BYD, which stopped producing cars powered exclusively by internal-combustion engines in 2022 and focused on electric and plug-in hybrid vehicles. Therefore, rising demand for Volkswagen’s new electric family represents a clear improvement in product performance, but alone does not prove that the company has resolved the cost, production or global competition battle. The order figures and waiting lists mentioned here are also based on Automobilwoche reports and internal sources, and the source did not provide comprehensive official confirmation from Volkswagen for all the details.