CEO Herbert Diess is confident Volkswagen will lead the way by 2025.
The recently revealed ID.Aero concept is the latest step in Volkswagen's journey to dominate the electric vehicle industry. With a claimed range of 385 miles and elegant styling, it will arrive in 2024 to challenge the Tesla Model 3. Many automakers have said they intend to rule the EV roost and overtake Musk's car company as the segment leader but, up until now, there are no signs of that happening - unless you're VW, that is.
The automotive group is poised to surpass Tesla in global EV production in the next two years, with an industry analyst commenting that "automakers in Europe, China and elsewhere will continue to challenge Tesla via an impending wave of new models, though profit incentives are limited amid rising battery costs and a lack of scale."
But limited profit incentives don't seem to worry Herbert Diess, who recently said the company is flush with cash, reports Reuters. "We are earning more than ever," he commented. VW's CEO also spoke positively about EV production, noting that the automaker is increasing EV production in its biggest markets thanks to the easing chip crisis.
Diess says this should put Volkswagen at an advantage, allowing the German automaker to achieve its goal of becoming a market leader in electric vehicles. "Elon has to ramp up two highly complex factories in Austin and Gruenheide at the same time - as well as expand production in Shanghai. That is going to take strength out of him," he added.
While possible, VW has plenty of work to do before it can unseat Tesla from the EV throne, particularly in the United States.
Last year, Tesla sold a staggering 911,208 units of the Model 3 and Model Y globally. Even more impressive are the 2022 first-quarter figures; 113,882 new Teslas were registered in the states. During the same period, Volkswagen managed to shift just 2,926 units of the ID.4, its sole electric offering in the USA.
The electric SUV will soon be joined by the much-anticipated ID.Buzz minivan, a battery-powered family hauler inspired by VW's iconic T2 from the '60s and '70s. The Volkswagen Group is also preparing to launch a trio of affordable electric hatchbacks and, while they're unlikely to reach our shores, they should go down a treat in other markets, if priced properly.
Cornering the affordable EV market will further cement the group's ambitions of leading the field as Tesla is yet to announce the arrival of a more affordable electric car. Currently, the cheapest Model 3 is priced at $46,990 - out of reach for many consumers.