In Germany, Volkswagen sells more electric cars than gasoline-powered cars, and that changes everything!
A symbolic milestone has just been reached at Volkswagen. In Germany, the automaker is now receiving more orders for its 100% electric vehicles than for its conventional models. This development is prompting the company to reconsider the layout of several of its factories.
Just a few years ago, Volkswagen had to deal with demand for its electric vehicles falling short of expectations and factories operating far from full capacity. The situation now seems to be reversing in Germany. According to Automobilwoche, the automaker is seeing orders for 100% electric models exceed those for conventional vehicles in its home market.
More Electric Than Internal Combustion Vehicles
Unfortunately, Volkswagen does not provide the exact breakdown. It is therefore impossible to determine whether electric vehicles account for 51%, 55%, or 60% of orders. However, Martin Sander, Volkswagen’s board member in charge of sales, confirms that battery-powered models now outnumber internal combustion vehicles in Germany. This is historic!
This trend extends beyond Volkswagen alone. According to the German association VDA, domestic orders for 100% electric cars from German manufacturers increased by 62% year-on-year in August 2026. Electric vehicles also made up 44% of new registrations in Germany that month.
Volkswagen Group had already seen a significant acceleration in the spring. In the second quarter, its orders for 100% electric cars increased by more than 50% in Europe compared to the previous year.
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Volkswagen revises its production plan
This change is already having very concrete effects in German factories. At Wolfsburg, where internal combustion engine models are still produced, additional teams originally planned will ultimately be eliminated. Production is expected to remain around 580,000 vehicles in 2026, down from the planned 600,000.
A New Push with Smaller Models
The trend may continue with the introduction of several affordable models. The group’s new lineup of small electric cars has already received over 100,000 orders. These include the Volkswagen ID.Polo, ID.Cross, Skoda Epiq, and Cupra Raval. The electric Volkswagen Polo accounts for a significant portion of these orders, with 40,000 reservations.
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This reversal of circumstances is quite dramatic. However, the downside raises concerns... According to Automobilwoche as well, Volkswagen makes less profit on an electric car than on a comparable gasoline-powered model. In the short term, this shift could strain the group’s profitability, even if sales volumes increase. And it’s not as if Volkswagen has much profit margin to begin with.