Beautiful Virgin Islands

Friday, Apr 03, 2026

Volkswagen and Audi are starting to challenge Tesla

Volkswagen and Audi are starting to challenge Tesla

The world's largest carmaker is starting to gain ground on Tesla.

Volkswagen (VLKAF) sold 231,600 battery electric vehicles in 2020, according to figures published by the company on Wednesday. While that's still less than half the number of sales Tesla (TSLA) made, it represents an increase of 214% on the previous year and shows Germany's huge auto industry is beginning to mount a challenge to the leader in electric cars.

"We are well on track to achieve our aim of becoming the market leader in battery electric vehicles," Ralf Brandstätter, CEO of Volkswagen Passenger Cars, said in a statement on Tuesday.

Volkswagen's most popular battery electric vehicle was the new ID.3, which sold 56,500 units. Sales of the compact e-Golf and even smaller e-up! were 41,300 and 22,200, respectively. Audi, the group's luxury brand, sold 47,300 e-tron SUV and sportback models, while customers purchased 20,000 electric Porsche Taycans.

Sales of hybrid vehicles, which are powered by electricity and conventional fuels, also increased. Volkswagen sold 190,500 plug-in hybrids last year, a jump of 175% over 2019.

"2020 was a turning point for Volkswagen and marked a breakthrough in electric mobility," Brandstätter said.

Tesla still poses a formidable challenge, however. The company led by Elon Musk hit its goal of building 500,000 cars in 2020, it reported earlier this month.

Production and deliveries rose by more than a third from 2019 levels, an impressive gain, especially considering that the company's factory in Fremont, California, was shut for nearly two months due to the pandemic. It's building a plant in Germany after opening another in China in 2019.

Investors have rewarded Tesla by making it one of the world's most valuable companies. At $805 billion, Tesla's market value is more than eight times that of Volkswagen even though the German company makes roughly 19 times as many vehicles.

Volkswagen has said it plans to invest €35 billion ($43 billion) in electric vehicles by 2025, and the sales figures for 2020 suggest that customers are beginning to respond. The manufacturing giant intends to launch roughly 70 pure electric models by 2030 as it races to catch up with Tesla.

Other German carmakers are joining the race. BMW (BMWYY) sold 44,530 battery electric vehicles in 2020, a 13% increase over the previous year, and over 148,000 plug-in hybrids. Daimler's (DMLRY) Mercedes-Benz sold more than 160,000 plug-in hybrids and pure electric vehicles last year.

The electric boom came even as the pandemic pushed overall industry sales into reverse. Volkswagen Group sold 9.3 million cars in 2020, a 15% decline over the previous year, but it said that deliveries were down just 3.2% in December as demand rebounded.

Volkswagen is trying to prove that a carmaker that just a few years back was cheating regulators to sell polluting diesels can produce electric vehicles people want to buy and policymakers will embrace as they tackle the climate crisis.

It's making significant inroads in some markets. In Norway, where financial incentives make most electric vehicle models cheaper to buy than similar petrol models, the Audi e-tron was the 2020 sales leader, surpassing Tesla's Model 3.

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Trump’s Strategic Pressure on UK Seen as Push for Stronger Alignment and Fairer Terms
UK Focuses on Trade Finance to Secure Critical Materials for Defence and Energy Sectors
Majority of UK Businesses Hit by Middle East Conflict While Confidence Holds Firm
UK Royal Navy Faces Renewed Scrutiny as Debate Intensifies Over Capability and Readiness
Reform UK Faces Mounting Distractions as Policy Agenda Struggles to Gain Traction
Investigation Launched Into Northern Cyprus IVF Clinics After UK Families Receive Incorrect Sperm
International Meeting Issues Unified Call to Safeguard Navigation Through Strait of Hormuz
Potential Strait of Hormuz Closure Raises Concerns Over UK Food and Medicine Supply Chains
UK Leads Coalition of Over Forty Nations Urging Iran to Reopen Strait of Hormuz
UK Secures Tariff-Free Access for Medicines in Landmark US Pharma Trade Agreement
King Charles III Invited to Address Joint Session of U.S. Congress in Rare Diplomatic Honor
Debate Grows Over Whether Expanded North Sea Drilling Can Reduce UK Energy Bills
UK Faces Heightened Risk of Jet Fuel Shortages, Airline Chief Warns
UK Ends Police Investigations into Lawful Social Media Posts After Review Finds Overreach
Abramovich Moves to Establish Charity for Frozen Chelsea Sale Proceeds Amid UK Dispute
Starmer Reaffirms NATO Commitment While Responding to Trump’s Strategic Critique
UK Aid Reductions Raise Fears of Severe Human Impact Across Parts of Africa
UK Signals Renewed Push for EU Cooperation as Iran Conflict Reshapes Security Landscape
Bank of England Signals Caution as Bailey Advises Markets Against Expecting Rate Hikes
UK to Convene Global Coalition to Restore Shipping Through Strait of Hormuz
Trump Signals Possible NATO Reassessment, Emphasizes Stronger U.S. Strategic Autonomy
Australia Joins British-Led Efforts to Reopen Strait of Hormuz Amid Escalating Tensions
King Charles Plans US State Visit as UK Strengthens Ties with Trump Leadership
UK Regulator Launches Investigation Into Microsoft’s Business Software Practices
Kanye West Set for High-Profile Return to UK Stage at Wireless Festival
Trump Presses Europe to Strengthen Commitment as Iran Conflict Escalates
UK to Deploy Additional Troops to Middle East Amid Rising Regional Tensions
UK Authorities Face Claims of Heavy-Handed Measures in Monitoring Released Pro-Palestine Activists
Trump Calls on UK to Secure Its Own Energy as Iran Conflict Intensifies
Nigel Farage Declines Invitation to UK Conservative Conference Led by Liz Truss
Trump Warns Allies to Take Responsibility as Rift Deepens with UK and France Over Iran Conflict
How Britain’s Prime Minister Controls U.S. Bomber Access in Escalating Iran Conflict
Trump Urges Allies to Secure Their Own Oil Supplies as Hormuz Crisis Disrupts Global Energy
Russia Expels British Diplomat as UK Pushes Back Against Pressure
White House App Faces Scrutiny After Claims of Continuous User Location Tracking
BBC Faces Scrutiny Over Allegations of Paid Content Linked to Saudi Arabia
UK-France Coastal Patrol Agreement Nears Breakdown Amid Migration Pressures
UK Police Detain Pro-Palestine Activist Again Weeks After Bail Release
FTSE 100 Advances as Energy and Mining Shares Gain Amid Middle East Tensions
Eli Lilly Seeks UK Pricing Deal to Unlock Renewed Pharmaceutical Investment
Three Arrested in UK After Massive Cocaine Haul Discovered Hidden in Banana Shipment
UK Fuel Prices Poised for Further Surge Amid Global Energy Pressures
Apple Subsidiary Penalized by UK Authorities for Breach of Moscow Sanctions
Western Allies Intensify Coordinated Sanctions Strategy Against Russia
UK Lawmakers Face Criticism Over Renewed Push for Social Media Restrictions
Starmer Signals UK Crackdown on Addictive Social Media Features
Rising Costs Push One in Five UK Hospitality Businesses to the Brink of Closure
Man Arrested on Suspicion of Attempted Murder After Car Strikes Pedestrians in UK, Injuring Seven
Escalating Conflict Involving Iran Tightens Fiscal Pressures and Highlights UK Economic Vulnerabilities
UK Moves to Confront Russian ‘Shadow Fleet’ Operating in Its Waters
×