Volkswagen cuts EV production despite being number one in Europe

Volkswagen is scaling back production of its electric vehicles in Europe to meet EV demand that’s not growing as fast as it hoped.

Representatives for Volkswagen’s factories in Germany have confirmed upcoming production pauses to Automotive News and Bloomberg.

Production at Zwickau will be paused for a week starting October 6, reportedly because of low demand for the Audi Q4 e-tron in the US due to tariffs. Zwickau also produces the Volkswagen ID.4 and ID.5 and electric SUVs, and the closely related ID.3 and Cupra Born hatchbacks.

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The lines will also stop at the Dresden ‘Transparent Factory’ during the first week of the October autumn holidays, with a spokesperson saying the break is because “the company is adjusting its production schedule to the current market situation”.

Originally built as the company’s showcase factory to produce the Phaeton limousine, Volkswagen’s ill-fated attempt to push itself into S-Class territory, the Transparent Factory now produces the Volkswagen ID.3.

The Emden factory, which produces the ID.4, and the ID.7 sedan and wagon, has cut back worker hours, and is planning to shut down for several days.

Volkswagen Commercial’s factory in Hanover will also halt production during the October autumn holidays, affecting the ‘T7’ Multivan and ID. Buzz electric people mover.

Figures from Dataforce, as published by Automotive News last week, show that Volkswagen (with 16,105 sales) was the number one brand in the EV sector across Europe in August, with sales up 45 per cent over the same time last year.

It edged out second-placed Tesla (14,345), which was down 23 per cent, and BMW (12,546) in third, up seven per cent.

The remainder of the top 10 includes Skoda (11,223), Audi (9564), Hyundai (8229), Mercedes-Benz (8207), Renault (7501), Ford (6619), and BYD (6465). All these brands, except Mercedes-Benz, recorded huge increases of between 54 and 123 per cent over the same time last year.

While Volkswagen was number one overall, the Tesla Model Y electric SUV (84,314) remains the best-selling EV throughout Europe this year. Although it is down an alarming 34.0 per cent, it is still well ahead of the Volkswagen ID.4 (51,380), up 33.6 per cent.

The Tesla Model 3 sedan (50,237) rounds out the 2025 podium despite a 29.0 per cent drop.

The rest of the top 10 consists of the Volkswagen ID.3 (49,275), Skoda Elroq (48,776), Volkswagen ID.7 (47,501), Kia EV3 (45,119), Renault 5 E-Tech (43,738), BMW iX1 (43,128), and Skoda Enyaq (41,970), all of which were up at least 26.6 per cent over this time last year.

Dataforce’s figures show the overall EV market in Europe growing 26 per cent in August over the same month in 2024.

Despite the positive sales data, Volkswagen’s dedicated EV factories are running well below capacity as demand for electric cars has not accelerated at the pace most manufacturers were hoping and planning for.

This has forced many manufacturers to scale back EV production plans, and approve the development of new generations of petrol and plug-in hybrid models.

Recent about-faces include Porsche’s decision to add petrol engines to the new Boxster, Bentley approving new a non-electric generation of the Flying Spur and Continental, and Volvo giving the greenlight a third-generation XC90.

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