Volkswagen AG VWAGY announced that the demand for its electric vehicles has been so great that some models have already been sold out for the year.
What Happened: According to a Bloomberg report, the German automaker stated that even when its electric vehicles are available again in 2023, the waiting list for these models is substantial. Sales of the company’s fully-electric and plug-in hybrid vehicles reached approximately 762,000 cars in 2021, an 80% year-over-year spike.
“We see better scale, we see better margins, we see high customer demand,” said Chief Financial Officer Arno Antlitz during a press briefing. “Originally, we thought it takes two to three years until we see the parity of ICE and battery-electric vehicles.”
Why It Matters: European consumers have taken a second look at electric vehicles in the wake of the war in Ukraine and the realization that the continent is overly dependent on imported Russian fuel for its needs.
However, Russia is also a major supplier to European manufacturers of steel, nickel and palladium, which are key components in building automobiles. Volkswagen has recently shut some of its manufacturing plants due to the disruptions created by the war in Ukraine.
“Raw materials are clearly a headwind for us,” Antlitz said. “There might be also the time when we need to pass on some of the increases to the market.”
Photo: Volkswagen ID.4 electric vehicle, courtesy of Volkswagen.
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