Volkswagen invests in tech to beat electric vehicle rivals
VOLKSWAGEN will invest €180bn (£159bn) into modernising its cars in the next five years, supercharging its plan to dominate the electric vehicle (EV) market.
Europe’s biggest carmaker said it would plough two thirds of the budget into developing battery-powered cars and the software to operate them.
Bosses hope it will help VW reclaim ground on its EV rival Tesla and combat growing competition from Chinese brands.
Deliveries of battery-powered cars rose 26pc last year to 7pc of sales, or more than half a million cars, VW said, cementing its position as a market leader in Europe for EVS. In China, the company’s largest market, it sold 68pc more electric cars in 2022.
Arno Antlitz, chief financial officer, said: “Our strong financial base puts us in a position to continue investing in the electrification and digitalisation of our company, even in a challenging economic environment”.
The company is planning to release a cheaper electric car in 2025 which costs about €25,000, a price comparable with a petrol-fuelled Golf.
Carmakers are battling to bring down the cost of electric cars in order to tempt buyers with tighter budgets.
VW said its best-selling EV was its pricier ID.4 model, which starts at £38,100 in the UK, followed by the £36,400 ID.3.