Volkswagen to sell more EVs than ICE vehicles in Australia within five years

Volkswagen says more than half of the vehicles it sells in Australia will be powered solely by electricity by 2028, as part of a bold EV vision outlined by the brand today.

While Volkswagen has been slow to the EV party that is fast gaining pace – the VW ID.4 and ID.5 mid-size electric SUVs will kick off the German brand’s local electric journey in the second half of 2023 – it says it will quickly become a major player.

The company says battery-electric Volkswagens will outnumber those powered by petrol or diesel within five years – much sooner than the 2035 timeline recently nominated by Kia.

“In 2024 we’re looking at 6500 EVs as part of the sales mix,” says Ralph Beckmann, Volkswagen Australia general manager of marketing and product.

“By the time we roll into 2025 to 2030 we’ll be selling 150,000 EVs throughout this period. By 2028… EVs will be overtaking the ICE models in our portfolio.”

And that’s a conservative estimate of the EV onslaught, according to VW.

“If there is any improvements or any advances on CO2 legislation or incentivisation to purchase EVs this can actually be brought forward.”

In other words, there’s a strong chance Volkswagen could be selling more EVs than combustion-powered vehicles by 2027 or even 2026.

The 150,000 EV target over the second half of the decade averages out at 25,000 cars per year, although Volkswagen says there will be growth each year, with many more EV sales in the 2029-2030 timeframe.

To put those figures in perspective, Tesla currently sells more EVs in Australia than all other brands combined and is on track to sell about 20,000 cars in 2022, with more growth expected in coming years. The total new-car market in Australia hovers around one million sales.

Either way, it’s clear Volkswagen is planning on being a major player in the EV space – just like Toyota, which is also yet to sell a single EV in Australia.

Key to Volkswagen’s EV growth is the ID.4, which will be the first to arrive in the second half of 2023, with prices starting at around $60,000.

It will be accompanied by the ID.5, which is a sleeker-looking version of the same battery-powered medium SUV and will command a price premium.

Volkswagen has also committed to releasing the updated VW ID.3 electric hatchback, although it won’t arrive until 2024.

Pricing for the ID.3 will come in below $60,000, according to Volkswagen Australia head of product for passenger vehicles Michelle Rowney.

She says it will undercut the conceptually similar Cupra Born, which employs the same electrical system and arrives here in early 2023.

“It’ll come in under the Born,” says Rowney.

Volkswagen has also confirmed its intention to sell the all-electric ID.Buzz people-mover and ID.Buzz Cargo delivery van in Australia, where both vans are also due on sale in 2024.

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