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- The ID.2 electric car will not be released before 2026.
- Xpeng's new shared electric cars will appear in 2026.
- The Volkswagen crisis could continue for several more years.
It’s been more than four years since Volkswagen launched its all-electric ID.3 and ID.4. At the time, the two cars were seen as a serious contender for Tesla’s position in the segment. However, things haven’t been going so smoothly all along, and 2025 is set to be another tough year for VW’s electric vehicles.
As in 2024, the German brand will not launch any new electric vehicles this year. In fact, the newest addition to the electric vehicle lineup is the ID.7 sedan, which will debut in the third quarter of 2023.
In fact, VW's next major release — the long-awaited ID.2 — won't arrive in select markets until 2026. Priced at under €2, the ID.25 is expected to have interior space comparable to a Golf while remaining as compact and affordable as the smaller Polo.
Hard times
In key markets including the US, Europe and China, Volkswagen is facing rapid sales of electric vehicles.
In Europe, subsidy cuts in key regions like Germany have dampened demand. Meanwhile, in China, a market crucial to VW’s long-term electric vehicle ambitions, the automaker is losing ground to nimble local rivals.
Even luxury offerings like the Audi Q8 e-tron and Porsche Taycan are failing to gain traction in a market increasingly dominated by more affordable mass-market electric vehicles from Chinese brands.
Big bets on China
A key part of Volkswagen's push into the Chinese electric vehicle market is its new partnership with Xpeng.
The two companies are working on a joint electrical and electronic (E&E) architecture that will underpin all electric vehicles produced by VW in China. The first models to be released under the partnership are due to arrive in 2026 and will include two mid-range VWs, one of which will be an SUV.
VW Group hopes to increase annual sales in China from 2,93 million last year to 4 million by 2030, but without new electric cars, the brand's crisis could continue.
