Volkswagen, a renowned German automaker, has encountered challenges in selling its electric vehicles in the United States, despite its substantial investment in this sector. In May of the previous year, Volkswagen postponed the launch of the ID.7 in North America indefinitely. This electric sedan, which has been available in Europe since 2023, is intended to replace the Passat and Arteon mid-size sedans. The company attributed this delay to “current market conditions.”
Sales data from Volkswagen revealed that only 17,021 units of the ID.4 SUV were sold, marking a significant 55% decrease from the 37,789 units sold the previous year.
In response to the sluggish demand for electric vehicles, Volkswagen plans to introduce a new series of hybrid vehicles. The British motoring publication Autocar reported that the company is focusing on developing a gas-electric hybrid engine. In Europe, Volkswagen already offers hybrid versions of popular models such as the Golf, Tiguan, Passat, and Touareg. These models include both plug-in hybrids, which require external charging, and 48-volt mild hybrids, which utilize a small electric generator instead of a traditional starter motor and alternator.
According to a source speaking with Autocar, Volkswagen’s forthcoming powertrain will resemble a traditional hybrid system similar to the Toyota Prius. This setup will not include an external plug and will consist of a gas-powered engine, an electric motor, and a battery. The configuration will allow for purely electric driving over short distances. The system is expected to be based on a turbocharged 1.5-liter four-cylinder engine, offering power levels ranging from 201 horsepower to 268 horsepower.
The new system is anticipated to debut in the T-Roc, a small crossover not available in the U.S. Nevertheless, Volkswagen confirmed last year its intentions to introduce plug-in hybrid electric vehicle (PHEV) models in the U.S. Pablo Di Si, the then-CEO of VW Group of America, mentioned that this technology could potentially be applied to any model they decide to sell as a hybrid in the United States. Di Si highlighted the demand from dealers and consumers for such vehicles and emphasized the positive developments in Volkswagen’s product portfolio. These details were initially shared with his team and the dealers before a broader announcement.
Volkswagen’s ongoing efforts to adapt to market demands and expand its hybrid vehicle offerings reflect a strategic shift in response to evolving consumer preferences and industry trends.