Can Volkswagen double its US market share by 2030? That’s the plan. VW will lean on new EVs, including a Scout-branded electric pickup and SUV, and its new Rivian partnership to charge up sales.
Volkswagen’s US sales rose 31% in the second quarter compared to last year. Besides the Jetta, SUVs accounted for the bulk of VW’s sales in the US.
The Tiguan (21,038) was the top-selling VW vehicle in Q2, followed by the Jetta (20,508), Taos (20,468), and Atlas (19,293). Including the Cross Sport version, VW sold over 29,000 Atlas models.
Volkswagen’s SUVs accounted for three-fourths of VW’s Q2 sales. Outside of the Jetta, VW only sold 3,845 passenger cars (not including SUVs) in the US last quarter. Meanwhile, sales of its sole EV, the ID.4, fell 15%, with only 5,690 models sold.
With intensifying competition from EV makers like BYD in China (VW’s most profitable market), Volkswagen expects the US to be its biggest growth driver.
With plans to double its market share in the US by 2030 to around 10%, VW looks to revamp the brand.
VW looks to Rivian, Scout EVs to gain US market share
After announcing plans to invest $5 billion into EV maker Rivian to form a new joint venture, VW expects the tie-up will pay dividends.
Although the partnership will not spawn new Volkswagen EVs, the company hopes new tech and software with Rivian’s help will attract US drivers.
It’s no secret VW has struggled with software. Several models, including the new Porsche Macan Electric, are hitting the market years after expected.
A recent report from Germany’s Manager Magazin claims Volkswagen is delaying more EVs, including the ID.4 successor and new Porsche electric SUV. The report notes the new delays come as VW’s SSP platform, is not expected to arrive until 2029, 15 months later than expected.
Volkswagen’s Cariad unit has been a problem child for years. Some say it was behind former VW Group CEO Herbert Diess’s departure. Diess launched the unit in 2020 to keep pace with Tesla.
With 30 electric vehicles planned for the US, VW expects EV sales to turn around. Although VW has yet to reveal all new models, we know a few that are expected to arrive in the near future.
Volkswagen is launching an electric pickup and SUV as part of plans to revive the rugged Scout brand. The Scout EVs will be built at its new $2 billion plant in South Carolina.
The brand is also launching an electric version of its iconic microbus in the US. VW’s ID.Buzz will hit the US market with a longer wheelbase and bigger battery than in Europe. Deliveries are expected to start in the next few months.
Update: Rivian’s CEO RJ Scaringe said the partnership with Volkswagen is different than its past ones with Ford and Mercedes as it’s focused on “precisely the thing that has always been the challenge.” (read more about Rivian’s past tie-ups here)
Electrek’s Take
Can Volkswagen double its US market share by the end of the decade? The German automaker is already facing stiff competition.
VW offers many small cars in the US, but its larger Atlas accounts for the majority of sales. With rising competition from Ford, GM, Jeep, Rivian, Tesla, and others, Scout is expected to play a significant role as VW looks to gain US market share.
VW will need to differentiate itself to establish itself as a leader. The partnership with Rivian and new Scout EVs will help, but establishing a new identity will be key for VW.
Can Volkswagen double its market share in the US by 2030? Let us know your thoughts below.
Source: Reuters, Volkswagen
