Volkswagen is focusing on sustainability, a move supported by recent customer surveys. However, the company’s electric vehicle (EV) sales tell a different story.
The German automaker Volkswagen is placing a strong emphasis on sustainability, a decision that appears to resonate with a large portion of its customer base. A new representative survey by the opinion research institute Insa, commissioned by Volkswagen and exclusively shared with t-online, highlights a growing customer expectation for sustainability. However, despite this support, the sales of electric vehicles (EVs) in Germany remain low, revealing a significant contrast between consumer intentions and actual purchasing behavior. According to the survey, 62% of participants believe that the automotive industry has a special responsibility to offer sustainable products. Meanwhile, 26% disagreed with this notion, and 12% did not provide an answer.
Customer interest in sustainability
The survey also reveals that 55% of respondents consider sustainability when purchasing a car, while 28% said it does not influence their decision. Interestingly, 10% of those surveyed do not buy cars at all, and 7% refrained from answering the question. Another positive finding for VW is that 59% of respondents believe companies investing in sustainability now will be more successful in ten years compared to those that do not. In contrast, 24% found this unlikely. The survey was conducted online from July 19 to 22, with 1,005 people over the age of 18 in Germany.
Volkswagen Group commented on the survey results, stating, “Volkswagen Group is convinced that its commitment to sustainable solutions today and tomorrow will open new business opportunities.” A key factor in VW’s sustainability efforts is the production of electric vehicles, which are crucial for meeting the EU’s CO₂ emission targets. Additionally, the German government has set ambitious goals of having 15 million EVs on the country’s roads by 2030.
Declining demand for electric vehicles
Despite the positive sentiments expressed in the survey, the reality of EV sales is far less promising. Many European automakers, including Volkswagen, are struggling to sell their electric vehicles. In July, only 30,762 new EVs were registered in Germany, a 36.8% decrease compared to the same month last year, according to the Federal Motor Transport Authority (KBA). Compared to June, the number of registrations plummeted by around 30%. EVs accounted for 12.9% of all new registrations in July 2024, down from 20% in July 2023.
This downturn is being felt by German automakers. Volkswagen reported that the year began “cautiously” and that its profits in the second quarter dropped by 4% to €3.63 billion.
Cost pressures and production delays
Volkswagen CEO Oliver Blume emphasized the company’s focus on cutting costs, stating earlier this month, “It’s all about costs, costs, and more costs. This applies particularly to the Volkswagen brand but also to all other brands.” The production of Volkswagen’s highly anticipated electric car, the Trinity, has been delayed. The vehicle, initially slated for release in 2026, will now be produced no earlier than 2030, according to company sources.
Demand for EVs weakened significantly, especially after the government ended its purchase subsidy at the end of 2023. The sudden halt to this financial support has increased consumer skepticism, compounded by concerns over the lack of comprehensive charging infrastructure.
The impact of low demand is not limited to Germany. International markets have also shown reluctance to embrace EVs, with serious consequences for the German automotive industry. On average, German factories owned by Volkswagen, BMW, Mercedes, and others were only operating at just over two-thirds capacity last year. According to data analysis firm Marklines, German plants could produce 6.2 million cars annually. This figure was nearly reached in 2011 when almost 5.9 million cars were built in Germany. However, in 2023, only about 4.1 million vehicles were produced, with three-quarters of them exported, according to the German Association of the Automotive Industry (VDA).
Volkswagen needs partners to succeed
Dirk Voeste, Head of Sustainability at Volkswagen Group, told t-online that VW cannot achieve the transformation toward sustainability alone. “This only works if other companies also participate and if there is the right support from the government. Additionally, customers need to have their concerns about electromobility addressed,” Voeste said.
The disconnect between customers’ stated values and their actual purchasing decisions is not unique to the automotive industry. A similar pattern is observed in the fashion industry, where many customers claim sustainability influences their buying decisions, yet this often isn’t the decisive factor. According to the Federal Ministry for the Environment, the global production of clothing has at least doubled since the turn of the millennium. Additionally, one in five garments is almost never worn.
