VW BEV Growth
The Volkswagen Group has been actively implementing its battery electric vehicle (BEV) strategy, evidenced by a notable 42% YoY increase in deliveries during Q1 2023. This growth translated to 141,000 BEV vehicles, which accounted for approximately 7% of the Group's total deliveries. Overall deliveries continued their upward trajectory, rising by 7.5% YoY, with a significant 23.9% increase observed in March 2023. Despite a 14.5% drop in Chinese deliveries during Q1, Volkswagen remains optimistic that its expanded model range and China-specific technology will enable a recovery in this region throughout the year. With a robust order book of 1.8 million vehicles in Western Europe, including 260,000 BEVs, customer demand for Volkswagen Group vehicles has proven strong.
To further expand its presence in China, the Group introduced the "100%TechCo" project, which streamlines vehicle and component R&D and procurement, aiming to reduce development times for new products and technologies by around 30%. Volkswagen is investing EUR 1 billion in a new innovation center in Hefei, focusing on fully connected electric cars. In collaboration with partners like the CARIAD and Horizon Robotics joint venture, the Group seeks to accelerate automated driving development and fast-track China-specific technology concepts.
Additionally, Volkswagen unveiled the ID.7 in China, marking another milestone on its journey to a fully electric model range. In North America, the Group is bolstering its global battery business with its first overseas battery cell factory in Canada and introducing new BEV models like the ID. Buzz. The "Electrify America Boost Plan" aims to double the number of charging points to 8,000 by 2026, while the electrification of the iconic "Scout" brand will see the Group enter the attractive truck and rugged SUV segment. Plans are in place to build a South Carolina factory capable of producing 200,000 EVs annually, complementing the Group's expanded US charging capabilities.