EVs are mostly sold out in Europe and the US for 2022

The Volkswagen Group (which includes Volkswagen, Audi, Porsche, Škoda, SEAT and others) reports that demand for its electric cars significantly exceeds production capacity.

Volkswagen Group CEO Herbert Diess recently said Financial Times that BEVs have basically sold out for 2022 in Europe and the US, as the backlog of orders in Western Europe alone has reached 300,000:

“We have very high order books and … entering electric vehicle orders,”

“We’re mostly sold out on electric vehicles in Europe and the United States. And in China it’s really increasing,”

This means that new orders (at least for most electric models) will result in a 2023 delivery. This is not a good message for buyers who would like to buy a new car, especially since due to inflation the new model year cars could be more expensive.

The issue of demand far exceeding supply was previously hinted at by Chief Financial Officer Arno Antlitz.

Recall that the Volkswagen Group sold about 99,100 fully electric vehicles during the first quarter of 2022 (an increase of 65% over the previous year), including 58,400 in Europe, 28,800 (over 27,100 family IDs) in China and 7,900 in the NAS.

The plan for 2022 is to sell approximately 700,000 BEVs (including 140,000 in China), which would require an average of 200,000 per quarter in the remaining three quarters. Previously, the best quarter was the 4th quarter of 2021 with 159,800 units, so this is not an easy task, especially with global supply constraints and blockades in China.

According to the report, Arno Antlitz expects the company to consistently increase the amount and share of BEVs each quarter this year.

We assume that this is that electrification is gaining in strength and that this is a general problem common to all large OEMs, who initially struggle with the increase for a variety of reasons. In the US, we can see that Ford and GM are also strongly committed to increasing volume, but the fruits usually come with a delay associated with the necessary investments in new electric vehicle plants, battery plants, new supply chains or even sales channels / methods.

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