Volkswagen cuts EV production Citing Strong customer reluctance

[Splitty]

This was based on a VW press release I guess https://www.teslarati.com/volkswagen-st ... ev-sales/
Meanwhile

Tesla and BYD Post Record Sales on Surge in Electric-Car Demand https://www.bloomberg.com/news/articles ... ld-results

So VW are postponing production of the ID7. They are beginning to sound like the Nokia of the automotive world. Poor software, better competitor products coming to market and slow to respond or fix internal problems.

It's a pity as I like the ID3 apart from all the issues with software and the odd hardware glitch.

[smyth1492]

I don't know a single family member or any friends that are ready to move to an electric vehicle, they would all replace their current vehicles with another ICE. IMHO we have hit saturation on those people that are switching and until ICE becomes not an option then sales are going to be slow.

[Andy1966]

I don't know a single family member or any friends that are ready to move to an electric vehicle, they would all replace their current vehicles with another ICE. IMHO we have hit saturation on those people that are switching and until ICE becomes not an option then sales are going to be slow.

I'd imagine when towns start charging more for parking as they are going to do in Bath https://www.bbc.co.uk/news/uk-england-somerset-66102609 then people will start looking at switching.
I've noticed a definite uptake in EV's here in Bristol and that because of the introduction of the Clean Air Zone. It costs £9 to drive a diesel in most of the town centre now.
It's early days for EV and most the things stopping people switching such as price, charging infrastructure etc will improve.

[Sherlock]

I think there are a number of factors at play here, certainly in the UK. Since I bought my 1st Edition 2.5 years ago we no longer have the government grant towards the purchase price or the grant towards the home charger. When I bought I also get a £500 charging credit. The price of the cars has gone up a quite a bit, and of course electricity prices are much higher as well. And then there are the more general cost of living issues particularly mortgage rate rises which must be having an impact. I am not at all sure I would have taken the plunge into the EV world if I hadn't had those incentives.

I note Tesla's sales surge, but they slashed the prices to achieve this. Perhaps VW will take the hint.

[sidehaas]

I think there are a number of factors at play here, certainly in the UK. Since I bought my 1st Edition 2.5 years ago we no longer have the government grant towards the purchase price or the grant towards the home charger. When I bought I also get a £500 charging credit. The price of the cars has gone up a quite a bit, and of course electricity prices are much higher as well. And then there are the more general cost of living issues particularly mortgage rate rises which must be having an impact. I am not at all sure I would have taken the plunge into the EV world if I hadn't had those incentives.

I note Tesla's sales surge, but they slashed the prices to achieve this. Perhaps VW will take the hint.

Agree with all this. Some people seem to be reading into this either that it's evidence that VW EVs are rubbish and not selling compared to others, or that the whole EV market is crashing because EVs and the infrastructure just aren't good enough for most people. Neither is true. In fact the ID3 and ID4 are the next best sellers in the last year in the EU after the Model Y. It's just that for all the reasons you give, buying a new EV is well down most people's priority lists right now, so if a company wants to maintain sales growth it needs to drop the price (a lot). VW don't seem to intend doing that.

[EdinburghID3]

Although they are saying sales are slowing, I think there will still be a steady stream of users switching to EV's. Personally, the salary sacrifice scheme at work has made it really economical to switch for me, albeit prices have risen a fair bit since I ordered my car back in 2021.

My brother has a company car and was paying something like £500-600 in BIK per month as it was a Diesel. He has now switched to a Tesla and is saving hundreds per month as a result. EV BIK is starting to increase (at 1% per annum I believe) but its going to be many years until it becomes as costly as the petrol/diesel equivalent.

[cakeDiver]

I think we hit saturation *in the demographic that are willing to pay a premium to drive an electric car*. I too love my ID3, but I have to say that with time that price has gone up, not down. And I have to admit that you get much more bang for your buck if you stay with an ICE car

[Splitty]

Interesting seeing the car registration data here in the UK for the year to June. (article from the Times)

"While petrol vehicles continued to be the most popular type of car, at almost 56 per cent of the market, there was strong growth in the battery electric vehicle sector, with new registrations rising more than 39 per cent to 31,700, or almost 18 per cent of the total market." https://apple.news/AsGxAgNTEQB2cGCb_N0dpDQ

I think what is becoming clear is that there is an growing choice in the market for electric cars. Peugeot, Citroen, Vauxhall, Ford, Tesla, Jaguar, MG, Kia etc. and if VW are to be believed then people are not choosing VW EV's.

VW seem to be seeing a decline in EV orders and are cutting back. But, other manufacturers are seeing an increase in orders for EV's and are increasing the range of available models. MG is just introducing the MG4 Xpower EV with dual motors and 0-60 in 3.9 secs, they also have an estate (MG5) and soon a sports car as well as SUV. Ford are focussing for now on SUV's (Explorer and Mustang), Mini, Honda plus others are are all there with cars, but all VW have is the ID3 and ID4/5 plus some press releases and a massive customer relations problem. We know they can't manage a software program right now, hopefully they can make a course correction before the market moves away from them.

Having said that, the article in the Times did point out that rising inflation and other costs may put new car purchases on the back burner going forward and we are probably seeing the surge due to fulfilling order backlogs. I just hope VW don't cut back and miss the market again.

[ChrisTurner]

I reckon it might also be a case of VW having to aggresively catch-up with those orders which were delayed due to World events leading to parts shortages, but the backlog has maybe mostly cleared?

[Hoppy]

As has been said previously the stigma of early release and software issues have stayed with ID3 plus the abysmal wait for delivery of new vehicles (not just VW) have all had an effect of sales, and watching the forum deliveries don’t seem to be improving !

Speaking to a neighbour he will not buy an EV until the infrastructure improves significantly and the cost of charging away from home reduces or comes on par (at least) with petrol diesel. We have seen the cost of petrol Reduce but charging prices are still very high (away from home) also the availability of chargers is at best patchy and unreliable! A recent trip to north wales went really well. But the return could have been an issue with a lack of chargers on or near M5 (a few off route, but showing in use or broken). Fortunately we had more than enough range in the ionic 5.

Potential buyers look at prices of charging and availability of chargers together with the high price of initial buy and can’t see any reason to switch.

There are certainly far more manufacturers with EV choices now and VW will have to look at their prices, customer service to ensure they can retain a foot in the market

To finish must say we love our ID 1st edition (50k) and my wife adores it!

Apologies for the ramble!!

[Shahev]

The benefits for EV as well as reducing pollution make sense for those acquiring on a company car scheme and can charge at home on low cost off peak electricity and/or solar. This demographic will reduce over time. We need affordable rapid public chargers to make EVs attractive to the majority as well reducing the cost of purchase.