Nearly fifty years ago, Volkswagen changed the hatchback world forever with the Golf GTI. The “GTI” moniker stood for Grand Touring Injection, a nod to the four-cylinder engine’s fuel injection system at a time when carburetors still ruled the roads. A lot has changed since then, but one thing remained constant: GTIs were powered by gas. Well, it looks like that’s about to change.

Also: No More IDs, VW’s EVs Will Get Real Names

Volkswagen is now working on the next era for the GTI sub-brand, one that will see the performance label expanding into a variety of segments with new models. However, unlike what we’re used to, all future GTI offerings will feature fully electric powertrains, with VW promising to deliver a “mind-blowing” driving experience.

The company has already confirmed the production version of the ID.2 GTI, with plans to follow it up with the next-generation Golf GTI. But those two won’t be the only GTI-branded models. According to Volkswagen CEO Thomas Schafer, these electric hot hatches will “start a whole group of GTIs,” hinting at even more electric performance models on the horizon.

The Electric GTI Revolution

While Schafer didn’t dive into specifics, there have been rumors about an ID.3 GTI, along with the possibility of an entry-level ID.1 GTI, assuming there’s enough demand for the slightly larger ID.2 GTI, which is set to arrive first. And let’s not forget about the potential for performance versions of VW’s electric SUVs, which have already proven their chops with the GTX models.

Schafer, speaking with Autocar, expressed his satisfaction with the progress of the electric Golf GTI’s development. While the current gasoline-powered version of the hot hatch is expected to run “very well into the end of this decade,” Volkswagen is already testing prototypes of its fully electric successor, which will be built on the new SSP platform.

Schafer, who’s taken some GTI prototypes for a spin, says that an electric Golf can still offer an exciting, authentic experience. He describes the new setup as “mind-blowing,” promising that the electric hot hatch will be “a monster car.”

He also emphasized that the aim isn’t just to make it fast, as VW wants to make sure the electric GTI models feel distinct from their standard counterparts. Expect upgrades in sound and handling, along with the inevitable performance improvements.

More: We Drove The 2025 VW Tiguan And It’s Not What You Expect, But It’s What You Need

This lines up with comments from VW’s technical boss, Kai Grunitz, who noted that electric GTIs will be about more than just raw power. The focus, he says, will be on “drivability,” ensuring that these models aren’t just fast, but fun.

A 2026 Debut?

While Volkswagen hasn’t confirmed a debut date for the first electric GTI, it could arrive in 2026, which would coincide with the 50th anniversary of the original Golf GTI. With the ID.2 (or whatever VW decides to name it) set for release next year, it’s possible the first electric GTI will be unveiled next summer during the GTI festival in Wolfsburg. Looks like the future of hot hatches might be electrifying, after all.

The German auto industry seems to be in the midst of an identity crisis. No, really. Mercedes has decided to ditch its EQ label for its EVs, BMW’s “i” series is about as consistent as a toddler on a sugar high, and Audi’s odd/even naming plan was clearly just a suggestion. Now, it’s Volkswagen’s turn to throw its own wrench into the mix and rethink its entire naming strategy.

More: Audi Ditches Odd-Even Naming Plan For ICE And EVs After Buyers Bamboozled

In an effort to simplify its lineup and make it more accessible, Volkswagen is planning to phase out the “ID” prefix that’s become synonymous with its electric vehicles. Starting as soon as 2026, the company intends to replace this alphanumeric branding with more traditional car names. Though details are still scarce, the change is meant to address growing confusion in the market around these designations.

The ID sub-brand was launched in 2017 with the concept version of the ID.3 hatchback, which later became the first production model in 2019. Over the years, VW expanded its offerings, introducing the ID.4, ID.5, and ID.6 SUVs (the latter available exclusively in China), the ID.7 sedan, and the ID. Buzz minivan. The brand had plans to further expand the ID lineup with the ID.1 city car and the ID.2 supermini by 2027, but it seems the game plan is now changing.

Shifting to Familiar Names

Martin Sander, a member of Volkswagen’s Board of Management responsible for Sales, Marketing, and After Sales, revealed during an interview with Auto und Wirtschaft that the company intends to return to using conventional names for its EVs. “The cars will get proper names again,” he said. “This will become apparent when we launch new models – neither the ID. 2all nor the ID. Every1 concepts will carry these names in production.”

Although Sander did not go into detail, Volkswagen has previously indicated that established nameplates might make their way into the EV world. For instance, the upcoming ID.2, set for launch in 2026, could adopt the Polo name, celebrating the model’s 50th anniversary this year. Meanwhile, the ID.1, expected in 2027, could take inspiration from previous names like Lupo, Fox, or Up!, or even receive an entirely new name.

New Names, New Beginnings

Earlier this year, Kai Grünitz, Volkswagen’s Board Member for Technical Development, mentioned that starting in 2026, the ID models will undergo a significant facelift. This would be an ideal time for Volkswagen to start phasing in the new names for its existing EV models.

Volkswagen is also working on an electric version of the Golf, which is set to arrive toward the end of the decade, along with an electric T-Roc SUV. There’s a good chance that familiar nameplates like Passat and Tiguan will eventually be used for future electric vehicles. The challenge for Volkswagen, however, will be distinguishing the EV models from their internal combustion counterparts, which will remain in production for a few more years.

Big Sales Targets For EVs

When discussing Volkswagen’s EV sales, Sander expressed confidence, saying, “We are very satisfied with the demand. We have a high order backlog for the ID.3, and we’re already selling more ID.7s in Europe than Passats.” He also highlighted the ID. Buzz, noting that it “plays an incredibly important role for the brand, especially given the significant hype surrounding it in the U.S.”

More: VW’s 1 Millionth EV Is Here, But It’s Crushing Them

Sander also highlighted Volkswagen’s ambitious sales targets, particularly for the upcoming ID. 2all, which is expected to launch in Europe at a starting price of €25,000 ($27,900). “With the production version of the ID. 2all, we are entering a completely different price range,” he said.

The ID. Every1, scheduled for 2027, is projected to start at an even more affordable €20,000 ($22,300). Thanks to falling battery costs and cost-cutting measures, this price point is within reach. “Everything regarding costs is being scrutinized,” Sander emphasized, noting that Volkswagen will leverage new production methods to ensure the vehicle is profitable from the start.

According to Sander, the target price of the urban EV that will be produced in Portugal will be made possible thanks to the declining cost of batteries, and extensive cost-cutting measures: “Everything regarding costs is being scrutinized. We have to leave no stone unturned and will use new production methods. Everything we change now will bring us to the point where the car will be profitable. The entire company will benefit from what we learn from this vehicle. You can’t build a project like this on hope – instead, we rely on solid success figures and plans.”

Sander also remains confident that electric vehicles will outpace internal combustion engines, stating that VW is “convinced that electromobility will prevail because electric cars are the better product”.

What About China?

Finally, the VW Board Member also touched on the competitive landscape in China, where Volkswagen’s EVs, like the ID.7, are facing pressure from lower-priced competitors. Despite the tough market conditions, the company is focused on long-term growth. “We are not buying market share,” Sander said, “but investing in our long-term strategic goals.”

“The electric car market in China is extremely competitive on price; even new models are sometimes launched by competitors with deep discounts,” he told the publication. “This also presents a challenge for the ID.7, which has been so successful in other markets. However, in this difficult environment, we are not focusing on short-term market success, but rather pursuing a sustainable growth plan.”

More: VW’s Concepts Mark The Start Of 30 New Models For China’s EV Future

Volkswagen aims to strengthen its position in China starting in 2026 with a new generation of market-specific electric cars. “We are the clear market leader in China in the still highly profitable segment of vehicles with combustion engines,” Sander added. As part of its strategy, Volkswagen is gradually hybridizing its combustion engine portfolio, positioning itself to lead the transition to electrified vehicles in the region.

The VW Golf GTI has earned its place as one of the most iconic hot hatches in history, but even this legend isn’t immune to the electric revolution. Just after Volkswagen announced it’s working on an ID.3 GTI, company boss Thomas Schafer confirmed that an electric Golf GTI will be hitting the market towards the end of the decade.

The new electric Golf will be built on VW’s SSP platform, but it’s still a while off because the current combustion Golf will stick around until at least the end of the decade. Even though the electric GTI is years away from production, development is already well underway. Schafer is adamant it will stay true to the GTI spirit, maintaining that front-wheel drive layout fans know and love.

Read: VW Is Making A New GTI, But Not The One We Want

“At the end of the decade we will bring an electric Golf [GTI], and that will be a monster car,” he told Auto Express. “I’m very happy with the progress. It’s cool. You can make it exciting, it has to be exciting, it has to be authentic. If we bring a GTI, it has to be a [true] GTI.”

While VW hasn’t yet built a physical prototype of the electric Golf GTI, the car’s dimensions and basic platform are already locked in, though, as Schafer pointed out, the final design isn’t fully set yet. “We have many iteration steps to get through,” he added, likely referencing the challenges of perfecting this new chapter of the GTI legacy.

A FWD Beast

Like all previous Golf GTI models before it, the new one will funnel its power exclusively through the front wheels, despite the current ID.3 GTX and future ID.3 GTX being sold as rear-wheel drive hatches. Fighting to put immense power to the ground without loads of torque steer in a front-wheel drive car can be difficult, but it’s possible the Golf GTI could match the 322 hp of the ID.3 version, which itself is roughly the same as the all-wheel drive Golf R. Some trick software systems to control this power at the front end efficiently will be a necessity.

And it won’t just be the GTI going electric. Schafer confirmed that an all-electric Golf R is also in the works. This will retain the all-wheel drive layout of the current model, meaning more power, better performance, and a continuation of the high-performance Golf formula we know and love. So, the electric future of the Golf lineup? It’s coming, and it’s definitely not going to be a boring ride.

Volkswagen isn’t wasting time signaling that the GTI nameplate won’t be left behind in the EV transition. The German automaker dropped a pretty clear hint when it rolled out the ID. GTI Concept at the 2023 Munich Motor Show. While that concept was aimed at previewing the upcoming ID.2 GTI, signs now point to an ID.3 GTI being next in line.

According to a report from Auto Motor und Sport, the car will slot above the ID.3 GTX Performance, which features a 79 kWh battery pack and an electric motor developing 322 hp (240 kW / 326 PS) and 402 lb-ft (545 Nm) of torque. This setup enables the hot hatch to accelerate from 0-62 mph (0-100 km/h) in 5.7 seconds and have a WLTP range of up to 373 miles (602 km).

More: VW ID.3 GTX Fire+Ice Is A Hot Electric Hatch That Pays Tribute To The Past

While little is known about the GTI variant at this point, the publication says it will arrive next year and be rear-wheel drive. However, don’t expect it to be significantly more powerful than the ID.3 GTX Performance.

Quite the opposite as they suggest the car could only have around 335 hp (250 kW / 340 PS). That’s not much of a boost, but the upgraded powertrain could be accompanied by “extensive modifications to the chassis … intended to enable even more agile handling.”

Besides the performance and handling tweaks, the car would likely incorporate a number of GTI styling cues. The hot hatch should also build on the ID.3 GTX Performance, which has revised steering, a retuned suspension, and an available DCC adaptive chassis system.

All of this will likely lead to steep pricing as the ID.3 GTX Performance starts at €48,725 ($54,706) in Germany. To put that into perspective, the Golf GTI starts at €45,655 ($51,255) while the GTI Clubsport begins at €49,225 ($55,263).

It hasn’t even been two years since the Ford Fiesta was unceremoniously retired, and yet, it may already be staging a comeback. This time around, though, the Fiesta could look very different. Instead of a traditional internal combustion comeback, the new version might arrive as part of Ford’s growing collaboration with Volkswagen, a partnership that has already produced models like the Explorer EV and Capri based on VW’s platforms.

VW’s head of sales and marketing, Martin Sander, says that the carmaker’s tie-up with Ford on EVs has already proven to be “very, very, very successful,” and is open to sharing technologies in a similar way in the future. Sander formerly worked at Ford in Europe and, as the Explorer EV and Capri use the same platform as the VW ID.4 and ID.5, Ford could conceivably develop new EVs with the same MEB Entry architecture as the ID.1 and ID.2.

Read: Ford Is Killing The Focus ST But Something Wilder Is Coming

Ford itself has not commented on the possibility of building a new entry-level electric hatchback, but Auto Express speculates that such a project is conceivable. Ford says it’s “confident in its ability to compete in the right segments,” so if it sees potential with an electric hatch, it may be wise to pursue it.

Looking at the numbers, the ID.2 could be a near-ideal blueprint for a new Fiesta. The ID.2all Concept is only 0.7 inches (or 18 mm) longer than the outgoing Fiesta, and it shares the same five-door layout. In terms of size and purpose, it’s almost a one-to-one match.

Of course, Ford would have to convince VW to let it use its underpinnings, even though a new Fiesta would likely snatch sales away from the ID.2, as well as the related Cupra Raval and Skoda Epiq. Unless VW thinks it will get something from the deal, it’s hard to see why it would be open to it. Admittedly, if a new Fiesta were sold in markets where the ID.2 won’t be, that would take away the threat of it stealing sales.

Meanwhile, Ford isn’t sitting still. A skunkworks team inside the company is reportedly working on a new budget-friendly EV aimed squarely at emerging rivals like BYD. This upcoming model could start at around $25,000 and may feature a lithium-iron-phosphate (LFP) battery pack, which offers cost advantages and improved durability compared to traditional lithium-ion batteries.

Regardless of the Fiesta’s return, Ford appears to be quietly assembling the pieces for a more affordable EV future, and it may not be long before we see what that actually looks like.

Party hats were compulsory headgear at VW’s Zwickau plant in eastern Germany this week. The factory produces six different EVs for various VW Group brands and just built its millionth electric car, an ID.3 GTX hot hatch. But Zwickau’s busy production lines are causing a headache for the bean counters at VW’s Wolfsburg HQ.

The problem is that EVs are expensive to build and deliver smaller margins than equivalent combustion-powered cars. And while electric sales doubling in Europe in the first quarter of 2025 is something to celebrate, some of those sales come at the expense of ICE sales.

Related: VW ID.2 Might Have A Shot In America, But ID.1 Is ‘Highly Unlikely’

As EVs take up a greater proportion of the sales mix – they accounted for one in five VW Group cars in Jan-March – they push profitability down, reducing the margin to 4 percent. And the withdrawal of EV subsidies in many European countries means VW can’t lean on government incentives to allow them to charge more.

But there is light at the end of the tunnel in the form of the VW ID.2 and its various spinoffs and related EVs. The €25k ($28k) ID.2, which will be built in Spain, goes on sale in 2026 and should be one of the first Western-built EVs to return margins close to an ICE car’s. The baby VW and its sister SUV, plus the Cupra Raval and Skoda Epiq use a new front-wheel drive version of the MEB platform that costs less to produce.

Earlier this month VW revealed that earnings before tax were down 40 percent to €3.1 billion ($3.5 bn) in Q1 even as deliveries increased by 1.4 percent. The company’s finance chief Arno Antlitz partly attributes this to EVs taking a bigger slice of the sales pie.

But President Trump’s tariffs threaten to throw an even bigger spanner in the VW Group’s plans. The constantly-changing US import tariff situation is making it harder for automaker to make financial forecasts for the rest of the year, but VW, which is badly exposed due to Audi and Porsche’s lack of US production sites, has already downgraded primed investors to expect a less successful year than previously anticipated.

It’s no secret that China’s automakers have been eyeing a bigger piece of the European market. Now, one of them may be about to gain a foothold right in the heart of Germany’s automotive landscape.

Back in January, reports surfaced that several Chinese carmakers were interested in buying or leasing two Volkswagen plants, one in Dresden, the other in Osnabruck, both of which are set to shut down as part of VW’s ongoing cost-cutting efforts.

More: Chinese Brands Fly In Record Number Of Foreign Journos And Influencers To Shanghai Show

Now it appears that Chery, China’s fourth-largest carmaker, which sold 2,603,916 vehicles in 2024 through its nine brands and joint ventures including with Jaguar Land Rover, is close to finalizing a deal to take over the two plants as it prepares to expand into European markets.

Chery Eyes Germany for Local Production

The company confirmed that it’s in advanced talks to start building cars in Germany, but didn’t reveal if it is VW it is negotiating with. Vice president of Chery International, Charlie Zhang, told Autonews Europe that the final decision will be made after all possible issues are solved. “We need to study the feasibility plan, because in Germany, the situation is very, very complicated,” Zhang said, adding that the company wants detailed info on regulatory requirements, labor unions, supply chains and costs.

If it comes to an agreement to purchase the two German plants, it intends to manufacture models for its brand-new Lepas brand that was launched only a few weeks ago, on April 2, and sells modified versions of Chery‘s Tiggo range that will be available in global markets. European-made models will include two compact and one midsize SUVs with combustion, plug-in hybrid or all-electric powertrains.

In any case, Chery is no stranger to building cars in Europe in an effort to avoid the hefty taxes imposed on Chinese EVs by the EU as, since 2024, it has been assembling cars at a former Nissan factory in Barcelona, Spain in partnership with local firm Ebro.

Zhang revealed that Chery is gearing up to upgrade that facility in order to increase production of the Tiggo PHEV SUV and add EV versions of the Omoda and Jaecoo brands that will be sold in the Old Continent.

By spreading its production across multiple European sites, Chery appears to be positioning itself not only to avoid trade barriers but also to tailor its offerings more directly to local market demands.

The latest episode in the ongoing feud between dealers and Scout Motors has escalated into a full-blown lawsuit. The California New Car Dealers Association (CNCDA) has filed suit against Volkswagen and Scout, accusing them of bypassing the law. Specifically, the CNCDA wants VW and Scout to sell their vehicles through dealerships instead of direct-to-consumer sales.

Forget about free-market dynamics, dealers are fighting for their slice of the pie, and they’re taking it to court to make sure they get it.

More: VW Talks US Pickup Again And It Could Be A Range-Extender EV

Brian Maas, CNCDA President, stated that “VW dealers would welcome the opportunity to sell Scout trucks and SUVs, but their manufacturer business partner is denying them that opportunity, in direct violation of California law.” The accusation here is that VW’s Scout Motors is allegedly breaking the law by allowing customers to buy vehicles directly from them, bypassing the traditional dealer model.

Is VW Picking and Choosing?

Maas didn’t stop there. He added, “Volkswagen can’t pick and choose which vehicles to sell on its own or through its franchised dealer network, reserving the most profitable or desirable vehicles for itself. Illegal competition will harm not only dealers but also the communities and car buyers that they serve.”

Of course, he fails to mention how wild markups, like the ones imposed by the very California dealers he represents, also hurt car buyers.

Scout and VW Fire Back

It didn’t take long for Scout and VW to respond, and unsurprisingly, both disagree with the CNCDA. After the dealer association sent a cease and desist letter to the automakers last year, Scout responded with a strongly worded letter. “VWGoA is not authorized by Scout Motors to sell, and will not be selling or distributing, Scout-branded EVs in California or in any other state. Scout Motors and the Scout brand exist and operate independently of VWGoA and its brands such as Volkswagen and Audi,” said Scout’s general counsel, Neil Sitron.

And if you thought Scout was backing down, think again. Sitron added, “Scout Motors will not do business with anyone that threatens or tries to intimidate it, either directly or indirectly…. should the CNCDA decide to act on its threats, Scout Motors will vigorously defend against them.”

Now, it looks like Scout will have to do exactly that – defend itself in a court of law. The CNCDA is accusing the automakers of unfair competition, false advertising, and is seeking civil penalties that could top $35 million.

It gets more interesting as Maas claimed that this suit “sends a message to every automaker.” That message could end up being “here’s how to sidestep dealers.” Tesla, Lucid, and Rivian have already proven that dealers aren’t necessary. If Scout and VW win this lawsuit, it’ll show legacy automakers a new path to direct sales, a model that consumers seem eager to engage with.

Volkswagen made quite an entrance at the 2025 Shanghai Auto Show, unveiling a trio of electrified concept cars that set the stage for future production models. The ID. Aura sedan takes the spotlight alongside the ID. Evo and ID. Era SUVs, each representing a different joint venture in China.

More: VW Teases New Pickup Truck For South, But Not North America

The automaker is committed to launching over 30 new models in China, including 20 new-energy vehicles (NEVs). Among these will be production versions of the ID concept cars, which could feature fully electric or range-extender powertrains. Additionally, they’ll be equipped with AI-based systems for highly automated driving.

Tailored for China’s Market

Volkswagen has emphasized that the design and technology behind these latest ID concepts have been specifically tailored to the needs of Chinese customers, with the intention to offer market-specific features. Thomas Schafer, CEO of the Volkswagen brand, pointed out, “The three concept vehicles are the visible outcome of our ‘In China, for China’ strategy.” He went on to note that the company has positioned itself to remain a leader among foreign automakers in China.

In terms of styling, the new concepts are a follow-up to the ID. Code SUV that was introduced last year. Andreas Mindt, head of design at VW, described the ID. Code as the “jumping-off point for our new design direction in China”, adding that the team has “refined this in recent months and adapted it specifically for each of our joint ventures.”

Starting with the sedan, we have the ID. Aura, crafted through the FAW-Volkswagen joint venture. This model is fully electric and sits on the Compact Main Platform (CMP), which was developed specifically for the Chinese market.

The ID. Aura bears no resemblance to the ID.7 Next or ID.7 Vizzion, which are already available in the region. Instead, it boasts a sharply sculpted profile and sleek, full-width LEDs at both the front and rear. Inside, it promises a cutting-edge, smartphone-like interface for the infotainment system, alongside an AI-powered humanoid assistant to make your driving experience feel just a little bit more sci-fi.

More: VW’s Lavida Pro Is Another Sedan The US Will Never See

The next concept is the ID. Evo SUV from the Volkswagen Anhui joint venture. This one is designed for “young, lifestyle-conscious buyers” and looks like a VW Tiguan from the future. The aggressive split LED headlights extend towards the profile, while the muscular rear shoulders lead to a sporty rear end.

The ID. Evo will be built on an 800-volt architecture, powered entirely by electricity. This SUV will feature a wide array of digital services, all while staying fresh thanks to regular over-the-air updates.

Finally, the ID. Era, from the SAIC Volkswagen joint venture, rounds out the lineup. Described as a spacious three-row SUV, the ID. Era will feature a range-extender powertrain. Its design includes an upright nose, split LED headlights, and a wrap-around greenhouse with a boxy tail featuring an integrated diffuser.

Volkswagen claims the production version will offer an impressive driving range of over 1,000 km (621 miles), with 300 km (186 miles) coming from the battery alone and another 700 km (435 miles) from the range-extender internal combustion engine.

Thomas Ulbrich, CEO of the Volkswagen China Technology Center, stated that the goal is to develop the production models within 34 months. He emphasized that the accelerated timeline would enable Volkswagen to introduce the right models, at the right speed, and with the right partners in China.

Volkswagen

The EV market in Europe is on a strong upward trajectory, with March 2025 marking the second-best month on record for registrations, contributing to the strongest quarter ever for battery electric vehicles (BEVs). Despite this impressive growth, however, Tesla’s updated Model Y “Juniper” couldn’t quite reverse the brand’s ongoing sales decline.

In March, BEV sales across Europe reached 240,891 units, marking a 23% year-over-year increase and capturing an impressive 17% market share, roughly one in five new vehicles sold. While this figure just misses the all-time high of 275,108 units set in December 2022, it still played a key role in making Q1 2025 the strongest quarter for BEV sales in European history.

More: Tesla Delays Cheaper Smaller Model Y, Plans Stripped-Down Model 3

According to data from JATO Dynamics, which includes 28 European markets, Tesla was the top-selling BEV brand in March 2025, despite experiencing a 30% drop compared to March 2024. However, this was an improvement compared to the sharper declines seen in January (-47%) and February (-44%), which, for Tesla, is at least a small win.

VW Finally Beats Tesla

This downward trend left Tesla in second place for BEV sales in Q1 2025, with 53,237 registrations (-38%), trailing behind VW, which saw a remarkable 157% increase with 65,679 units sold. Even BMW is now closing in on Tesla, recording a 21% increase over the same quarter last year with 46,557 sales in Q1 2025. The top 5 spots are rounded out by Audi, with 34,739 units sold (an impressive 51% growth), and Renault, which posted 31,880 deliveries, an even more impressive 89% increase.

When it comes to individual electric models, Tesla’s Model Y and Model 3 dominated the top spots in Europe for Q1 2025, with 29,770 (-49%) and 23,044 (-14%) registrations, respectively. Interestingly, the much-hyped launch of the heavily updated Model Y Juniper didn’t quite deliver the expected sales spike. In its first full month of sales in March 2025, it recorded 15,164 registrations, a 43% drop compared to the previous year.

More: Tesla’s 15% Sales Crash In California Could Signal A Bigger EV Crisis

VW made a strong showing, with three of its models in the BEV top 10 chart for Q1 2025: the ID.4 (3rd), ID.7 (4th), and ID.3 (6th). Other noteworthy entries included the Kia EV3 (5th), the Renault 5 E-Tech (8th), and the Citroen e-C3 (10th), all of which are new additions to the list.

In the U.S. market, EV sales reached 296,227 units (+11.4%) in Q1 2025, with Tesla commanding a significant 43.5% share (128,100 units), despite a slight -8.6% dip in sales compared to the same period last year.

Overall Sales Show Modest Growth in Europe

Back in Europe, regardless of powertrain type, a total of 1,423,340 vehicles were registered in March 2025, marking a 3.2% increase. This brought the Q1 total to 3,383,986 units, a nearly flat -0.02% change. The Peugeot 208 topped the sales charts in March, while the Dacia Sandero held onto its lead in the Q1 rankings.

In terms of sales declines, Tesla (-38%) wasn’t the only brand facing challenges. Other notable drops in Q1 included Maserati (-39%), Mitsubishi (-43%), Smart (-65%), Lancia (-73%), Abarth (-75%), and Jaguar (-82%).

The World Car Awards have been presented at the New York Auto Show and they were a truly global affair. So much so, that most of the winners aren’t even available in the United States.

While that’s disappointing, the Kia EV3 was named 2025 World Car of the Year. The model beat the BMW X3 and Hyundai Inster to win top honors, earning Kia their second consecutive World Car of the Year award following last year’s crowning of the EV9.

2025 Kia EV3 Review: Everything We Love About The EV9 Made More Affordable

The EV3 isn’t offered in America, but it’s coming as long as tariffs don’t get in the way. That being said, we tested it earlier this year and came away pretty impressed.

Electric vehicles had a strong showing this year as the Volvo EX90 was named 2025 World Luxury Car. It bested the Porsche Macan and Porsche Panamera to take top honors.

The electric crossover starts at $79,995 and features a 111 kWh battery pack as well as a dual-motor all-wheel drive system with 402 hp (300 kW / 408 PS) and 568 lb-ft (769 Nm) of torque. This enables the model to hit 60 mph (96 km/h) in 5.7 seconds and travel up to 310 miles (499 km) on a single charge.

Moving on, the Hyundai Inster / Casper Electric was named World Electric Vehicle. It’s a pint-sized urban crossover that has 113 hp (85 kW / 115 PS) and is primarily offered in the East.

The EV trend continues as the BYD Seagull / Dolphin Mini was named World Urban Car. The hatchback costs less than $10,000 in China and the Seagull Intelligent Driving Edition offers up to 252 miles (405 km) of range.

World Car Design of the Year, unsurprisingly, went to an EV. It was the Volkswagen ID. Buzz, which is interesting as the electric van has been around for a few years now. That doesn’t exactly seem fair, but the model bested the Kia EV3 and Toyota Land Cruiser / Land Cruiser 250 for the title.

Last but not least, there’s the only non-EV to win an award. It was the Porsche 911 GTS, which was named 2025 World Performance Car.

The sports car starts at $169,800 and features a hybridized powertrain that consist of a turbocharged 3.6-liter flat-six, an electric motor, and a small battery pack. This gives the model a combined output of 532 hp (397 kW / 539 PS) and 449 lb-ft (608 Nm) of torque. This enables the coupe to accelerate from 0-60 mph (0-96 km/h) in 2.9 seconds before hitting a top speed of 194 mph (312 km/h).

Update: Volkswagen has just released a few more teaser images of its trio of concept electric vehicles set to debut at the upcoming Shanghai auto show, offering a still shadowy—but intriguing—glimpse of what’s in store later this month.

Momentum continues to build for the Shanghai Auto Show as Volkswagen will use the event to introduce three new concepts. They’ll highlight the company’s “In China, for China” strategy and be presented by their Chinese joint ventures.

The company didn’t go into many specifics, but confirmed there will be two crossovers. One will be an EV from Volkswagen Anhui, while the other is a B-segment SUV with a range-extended powertrain from SAIC Volkswagen. Rounding out the lineup is an electric notchback from FAW-Volkswagen.

More: ID. Every1 Concept Previews VW’s Cheapest EV

The teasers aren’t very revealing, but they suggests the models will have slender headlights that are connected by an illuminated bar. That’s not much to go on, but the company said the concepts will embody their new “China DNA – both in terms of technology and design and in relation to development time, which has been cut by more than 30 percent.”

Speaking of the latter, Volkswagen confirmed the concepts preview upcoming production models. These will be launched starting next year.

Volkswagen’s design boss Andreas Mindt said, “We have adapted our established European design values – stability, likability and the ‘secret sauce’ – to the Chinese market. The result is a design philosophy that honors the heritage of our brand while at the same time reflecting the desires and expectations of a new generation of customers in China.”

His sentiments were echoed by Volkswagen brand CEO Thomas Schäfer who said, “Our aim is to remain the leading international automaker in China. We have everything that it takes to be successful: shorter development times, strong partners, sophisticated local development, production and infrastructure as well as the right products and innovations for our Chinese customers.”

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Tesla’s sales sank alarmingly in Q1, falling 13 percent to 337,000, a fact that on its own would be enough to make Volkswagen’s German execs crack a wry smile. But what they’ll really have them bro-hugging in Wolfsburg is knowing that Tesla’s misfortune is almost certainly linked to VW posting record EV sales figures over the same period.

Related: Tesla’s European Sales Have Collapsed, Down 45% As EV Market Surges 31%

Sales of fully-electric VW Group vehicles jumped 59 percent in the first three months of the year, reaching 216,800 compared with 136,400 in Q1 2024. By comparison, Tesla reported 336,681 deliveries in the same period, down 13 percent from last year. But even that success is dwarfed by what happened in Europe.

EV Momentum in Europe

EV sales there exploded by 113 percent to 158,100, up from just 74,400 a year earlier, no doubt helped by widespread dislike of Tesla CEO Elon Musk, particularly in Germany, where Musk came out in support of the far-right AfD party. A poll last month found 94 percent of Germans wouldn’t buy a Tesla due to the CEO’s antics. That sentiment appears to be hitting where it hurts: in Q1, Tesla’s sales in Germany plummeted 62 percent compared to the same period last year.

Strong Gains in the US, Trouble in China

US sales also grew significantly, Americans taking home 19,900 EVs, representing a 51 percent increase. But there was bad news from China where EV sales plummeted 37 percent to 25,900 units. And although the global EV sales result is definitely worth celebrating, it ought to be viewed in the context of the sales of vehicles of all power types.

VW GROUP EV SALES

That number did improve, but only by 1.4 percent to 2.13 million units, the decline in demand for combustion cars offset by both the surge in demand for EVs and a 15 percent uptick in PHEV sales. Overall sales in China were down 7 percent, the only region to see a fall.

VW’s Top-Selling EVs

VW’s best-selling EV globally was the ID.4/ID.5, which racked up 43,700 sales, followed by the ID.3 hatch with 28,100 deliveries. Audi’s Q4 e-tron – a reskinned ID.4 – placed third with 22,800 sales, the Skoda Enyaq found 20,200 buyers and VW’s ID.7 scored 19,100 sales.

Porsche’s Macan Electric only ranked seventh with 14,200 sales but since it wasn’t on sale in Q1 2024 its appearance in this year’s Q1 helped Porsche’s EV deliveries jump by 326 percent.

EV SALES BY BRAND

We’ve heard rumors that Volkswagen was considering a pickup based on the Scout Terra, while Audi could get a luxury off-roader derived from the Traveler. Those two models remain unconfirmed, but evidence appears to be building.

Speaking with Autocar, Scout Chief Technical Officer Burkhard Huhnke noted the Terra and Traveler ride on a unique body-on-frame platform that was developed from scratch. He added, there’s “no body-on-frame platform in the entire [Volkswagen] group,” so this makes it pretty special. While Volkswagen does offer a body-on-frame Amarok, it’s simply a Ford in disguise.

More: Meet The New Scout Terra Truck And Traveler SUV

Putting the blue oval aside, developing a new platform isn’t cheap and Huhnke acknowledged “You never get money for free.” However, he wouldn’t say whether or not the body-on-frame architecture would be used to underpin additional vehicles.

This would help to spread development costs as well as increase utilization at Scout’s plant in South Carolina. The facility will be able to build up to 200,000 vehicles annually and construction appears to be moving smoothly as the company’s latest update revealed the “final heavy steel beams went into place” and “exterior walls are going up quickly.”

Needless to say, 200,000 vehicles is a lot and it’s doubtful the Terra and Traveler will need that much annual capacity alone. A rugged Audi SUV seems like a natural candidate as it would give the brand something to rival the Mercedes G-Class and Lexus LX.

On the Volkswagen side of the equation, Autocar reports the company had envisioned a Defender-like ID. Ruggdzz. The model was reportedly scrapped, although the automaker is said to be keen on revisiting the idea.

However, the pickup rumor might make more sense as Volkswagen could offer a more affordable and mainstream version of the Terra. It would likely compete with the Chevrolet Silverado EV, GMC Sierra EV, Ford F-150 Lightning, and Ram 1500 REV / 1500 Ramcharger.

However, a large pickup has disadvantages and any such model would likely be reliant on the United States. A rugged SUV, on the other hand, would have more global appeal.

Audi and their works council have reached an agreement that aims to reduce labor costs and increase flexibility at German production sites. The automaker also said they’re extending a “job protection plan until the end of 2033.”

The company didn’t go into many specifics, but noted economic conditions are becoming “increasingly tougher,” while they’re also forced to deal with “political uncertainties” and new competition. This is a perfect storm of bad news and it’s being complicated by slower than expected electric vehicle adoption.

More: VW Confirms More Than 35,000 Job Cuts In Germany, Golf Production Moving To Mexico

Unfortunately, this means cuts but they won’t be as deep as the ones at Volkswagen. However, Audi is still planning on a “socially responsible reduction” of up to 7,500 jobs by 2029.

Aside from eliminating employees, Audi aims to reduce bureaucracy and put a renewed focus on their product portfolio. The latter has become a problem as important models, such as the Q7, have grown stale.

Audi will also “reduce personnel costs by adjusting payments above the collective wage agreement and variable payments for pay-scale employees.” The automaker didn’t spell things out, but it sounds like managers and the Board of Management will be taking a pay cut. The automaker also mentioned a retooled profit sharing program to help “future-proof” the company.

As for the so-called job protection plan, Audi will invest around €8 ($8.7 / £6.7) billion into Germany through 2029. In Ingolstadt, this will pave the way for a new entry-level EV as well as production of the redesigned Q3, which will also be built in Győr, Hungary.

Audi was tight-lipped about plans for Neckarsulm, but hinted the “electronic architecture of combustion-engine vehicles will be developed further, significantly increasing their competitiveness.” The company also said they’re examining the possibility of building an “additional model” at the plant.

Rainer Schirmer, Vice Chairman of the General Works Council, said “We were able to future-proof both sites. For Neckarsulm, this means, among other things, that we were able to secure a ‘future fund’ for plant development, which we can use to set up new production platforms – for future electric models. To this end, Neckarsulm is to be expanded as an AI and digitalization center for the entire Audi Group.”

Audi CEO Gernot Döllner said the deal was a “strong agreement for the future of the company” and one that will strengthen their competitiveness. However, he noted “Audi must become faster, more agile, and more efficient” and this “cannot be done without personnel adjustments.”

Despite confirming the needs for cuts, Döllner said there would be “no layoffs due to operational reasons until the end of 2033. In these difficult economic times, this is good news for all employees.”

While Audi didn’t go into detail, Handelsblatt is reporting the company aims to save around €1 ($1.1 / £0.8) billion annually at their German sites. They also noted the Neckarsulm plant will build “large electric sedans,” while Ingolstadt could make the A3 – presumably in electric form judging by Audi’s statement.

Speaking of production, Audi has a Trump problem as they don’t have any plants in the United States. If the trade war worsens, the four-ring brand might set up shop at Volkswagen’s Chattanooga plant.

Audi also appears to have abandoned plans to go electric-only. This is a major change as, less than a year ago, they were adamant “we will transform our product portfolio and switch completely to electric vehicles. Our customers will experience the last major world premieres of new model lines with conventional drive systems in the course of 2026.” While the automaker didn’t exactly admit defeat, they acknowledged the continued development of ICE-powered vehicles.

We’re just a few years away from the next-generation VW Golf, and it’s been confirmed that it will use the trick software architecture VW is co-developing with Rivian. The new Golf is expected to launch in 2029 and as always, it will be a very important model for the brand, offered exclusively as an EV and sold alongside the current Mk8 Golf.

The VW Group has committed $5.8 billion to its partnership with Rivian, co-developing a new electric architecture to be used by future models from both automakers. The new architecture will consolidate the complexity of current VW systems and dramatically reduce the number of control units needed. It also uses a zonal architecture, providing VW with added flexibility.

Read: Rivian And VW Are Teaming Up To Reinvent The New Electric Golf Mk9

The first VW model to use the new architecture will be the electric ID.1, and the Mk9 Golf will follow, potentially dubbed the ID. Golf. According to VW technical chief Kai Grünitz, starting with the ID.1 “reduces the risk for the Golf,” because the brand’s base EV will have less functionality than the Golf, allowing VW to iron out any kinks. Over-the-air updates will serve as an important feature of the architecture.

“The benefit of the zonal architecture is that I can put one, two or three zones in a vehicle,” Grünitz told Autocar. “Vehicles in lower price segments will just need one zone, while a premium vehicle might need three or four, depending on functions. I can use a dedicated system-on-chip [SoC] family for each model. So for the ID 1, I can use an SoC with a lower price point and complexity, but if I take the same architecture over to the Golf, I can use a different SoC that costs more money but gives additional functions. But it’s still the same software.”

Underpinning the next-generation VW Golf will be the group’s flexible SSP platform with an 800-volt architecture. It will also use a new cell-to-pack battery design.

VW will build the new Golf at its factory in Wolfsburg, Germany, while moving production of the current Mk8 Golf away from its homeland and to a plant in Puebla, Mexico.

It’s only been a week since VW previewed its new entry-level EV with the ID. Every 1 concept, and already, the brand has confirmed where the production model will be built. It won’t be brought to life in Germany, but rather at VW’s Autoeuropa plant in Setubal, Portugal.

The production version of the ID. Every 1, likely simply named the ID.1, will be an important vehicle for VW. It will serve as its entry-level EV and start at around €20,000 (~$21,000), allowing it to rival the BYD Seagull that’s destined for Europe. To build and sell a small EV for so little money, it makes sense why VW wants to make the most of cheap labor and energy costs in Portugal.

Read: ID. Every1 Previews VW’s Cheapest EV

According to VW boss Thomas Schaefer, the site is one of their most cost-efficient factories in Europe and he believes the ID.1 will serve an important role in bringing new consumers to the brand, Auto News reports. During the same interview, Schaefer revealed VW might also tap Chinese suppliers for various ID.1 parts, allowing it to reduce costs compared to usually locally sourced components.

The ID.1 will be sized between the Polo and the pint-sized Up! but should have interior space to match the slightly larger Polo. Like the concept, the road-going model will be based on VW’s new MEB front-wheel drive platform and have a single electric motor with 94 hp. The company hasn’t said what size battery pack the EV will have.

VW’s entry-level EV will also be the first of its models using the electric architecture currently being developed alongside Rivian. The two automakers announced a tie-up last year and the German brand is investing $5.8 billion into the American EV manufacturer. The first VW Group products to launch with the new architecture will come from Porsche and Audi, launching in 2027.

According to VW Group chief financial officer Arno Antlitz, it’ll be “difficult” for the company to achieve positive margins with the ID.1, but he thinks it’ll relieve pressure on some of VW’s more profitable EVs, like the ID.2.

Volkswagen’s ID.4 sales have rocketed in the first part of 2025 and now the automaker is redoubling its electric efforts and readying a new family of smaller EVs. But while European VW fans will get access to all members of that family, it sounds like their American counterparts won’t get the chance to put the smallest of them, the ID.1, in their garages.

Earlier this week, VW revealed the ID.Every1 concept, a thinly disguised preview of the ID.1 (name TBC) production EV that goes on sale in Europe in 2027. But a year before that lands in showrooms, the German carmaker will launch the production version of 2023’s ID.2all concept, and this fall we’ll get a look at an SUV spinoff of that model, the ID.2X.

Will the USA Get Any of VW’s New Small and Affordable EVs?

However, when we asked VW North America if it had any plans to offer the ID.1 or larger ID.2 in the US, it was quick to tell us not to get our hopes up for the little guy making the cut. A spokesperson told Carscoops it was “highly unlikely” that the ID.1, which is sized between the now-dead Up! and Polo subcompacts, would be sold in the US.

The prospects for the ID.2, on the other hand, look rather better. The VW rep told us they “can’t confirm anything about the ID.2,” which isn’t the same thing as saying it’s definitely coming, but it’s no denial either.

Related: ID.Every1 Previews VW’s Cheapest EV

Which version of the ID.2 they were not confirming anything about, they didn’t say. The crossover model seems the most likely to get the nod given America’s love for utilities and general lack of enthusiasm for hatchbacks. But then the ID.2 hatch would be no ordinary hatch because it could tap into the love for the Golf, which has been a part of the US auto landscape for almost 50 years.

What Do These Small EVs Bring to the Table?

All three junior ID cars share the same new MEB platform, which, unlike the current MEB architecture found in EVs like the ID.3, ID.4 and ID.Buzz, features a motor at the front of the car driving the front wheels. The 3,880 mm (152.8 inches) ID.Every1, whose production version is expected to cost just €20,000 (£17k / $21k), is powered by a tiny 94 hp (95 PS / 70 kW) motor and can only travel 155 miles (250 km) on a charge.

The ID.2all hatch concept unveiled two years ago measured 4,050 mm (159.4 in), had a 223 hp (225 PS / 166 kW) motor and was claimed to be capable of 280 miles (450 km) – stats that would be fare more palatable to an American audience. VW is targeting a €25,000 (£21k / $26k) price for the production car.

So, if VW were to bring one of these smaller EVs stateside, which would you want to see?

Volkswagen has confirmed that a fully electric ID.2 GTI is coming next year, but it seems that an even smaller hot hatchback might be in the works. A VW board member has revealed that an ID.1 GTI could happen, given there is enough customer demand.

While the ID.2 GTI will carry the torch from the soon-to-be discontinued Polo GTI, a possible ID.1 GTI could serve as a successor to the Up! GTI. The smallest member of the future GTI lineup would also be the most affordable, making hot hatch thrills accessible to a wider audience.

More: VW Polo To Live On With A 2025 Facelift Because Not Everything Has To Be An EV

When asked by Autocar about the possibility of an ID.1 GTI, Volkswagen Brand Board Member for Technical Development Kai Grunitz said: “It could happen because we’re using modules from the MEB platform. So it could. But it depends on various factors, including the reaction of customers to this car.”

However, Grunitz mentioned the potential overlap with the slightly larger ID.2 GTI that will launch in 2026: “Also we have the ID.Every1 and we have the ID.2all, which will get a GTI version. Having everything in the ID.1 would mean it’s not necessary to have everything in the ID.2. The ID.2 is larger and has a lot more functions and more value. It’s the same as with the Up! and the Polo. So we will see.”

Illustrations: Thanos Pappas for CarScoops

It seems that the sales performance of the upcoming ID.2 GTI might determine whether the ID.1 GTI gets made or not as VW is dipping its toes on the performance EV market. Given that the strict emission regulations have drastically increased the R&D cost for ICE-powered hot hatches, the fully electric equivalents seem to be the only way forward in this segment.

VW Has All The Right Ingredients For A Small GTI

The ID.1 and the ID.2 will ride on the same MEB Entry architecture, with a single-motor, FWD layout. In the ID.Every1 Concept the powertrain is good for 94 hp (95 PS / 70 kW), but the ID.2all Concept had a more potent motor generating 228 hp (170 kW / 231 PS). The latter sounds like a great fit for a small and lightweight ID.1 GTI, transforming it into a pocket rocket.

More: VW Brings Back Physical Buttons After Admitting Touchscreens Are A Disaster

Besides the extra power, VW engineers could add a limited-slip differential, a stiffer suspension, and stronger brakes, enhancing the handling credentials of the small EV.

Of course, the performance-focused version of the ID.1 would also benefit from a sporty redesign. Our exclusive rendering borrows styling cues from the ID.GTI concept, transforming the city car into a hot hatch. Modifications could include a new set of alloy wheels, sportier front and rear bumpers, deeper side skirts, a rear spoiler, and GTI emblems.

Given that the launch of the VW ID.1 is scheduled for 2027, a GTI version is at least two or three years away. Hopefully, customers will embrace this new era of performance, motivating automakers to invest in hot versions of their city car and supermini offerings.

Volkswagen has finally realized what pretty much every driver already knew: stuffing every function into a touchscreen is a nightmare. The company’s design boss, Andreas Mindt, has revealed that future VWs, starting with the ID.2, will feature physical controls for essential functions. This might sound like common sense, but, hey, better late than never.

More: Physical Controls Are Back Because Drivers Are Sick Of Endless Touchscreen Menus

In late 2022, VW made the bold (and highly unpopular) decision to ditch traditional physical buttons and switch to touch-sensitive controls on the steering wheel. That, predictably, led to a flood of complaints. So, after the unveiling of the ID.2all concept in 2023, VW admitted its mistake and promised to roll back the touch-centric design. Now, Mindt is spilling the details on the company’s course correction.

The Return of Buttons

Mindt told Autocar that next-gen VW models will come with physical buttons for the five most important functions: volume, seat heating, fan controls, and hazard lights—right below the infotainment screen. No more endlessly swiping through menus just to turn on the heat. He also made it clear that this shift would apply “in every car that we make from now on. We understood this.”

In a refreshingly candid moment, VW’s design boss openly admitted that the strategy followed by his predecessor wasn’t the right one: “We will never, ever make this mistake any more. On the steering wheel, we will have physical buttons. No guessing any more. There’s feedback, it’s real, and people love this. Honestly, it’s a car. It’s not a phone: it’s a car.”

The first car to embrace this much-welcome change with an extra row of physical buttons under the infotainment display will be the ID.2all electric supermini, which is set to launch in 2026. The production version of VW’s ID.Every1 concept, expected in 2027, will use a similar layout. Say goodbye to those awkward, touch-sensitive sliders that control everything from volume to AC temperature. Honestly, if you’ve ever tried to adjust the heat on a touchscreen while driving, you probably understand why this was inevitable.

More: Hyundai Going Back To Physical Buttons Because American Buyers Don’t Like Touchscreens

This means that VW will finally ditch the haptic sliders currently being used to control the media volume, navigation zoom, and A/C temperature. These can be found in several VW Group models including the facelifted Golf.

Despite all the button talk, Mindt made it clear that the touchscreen isn’t going anywhere. “There are a lot of functions you have to deliver in certain areas, so the screen will be big and you will find a lot of HMI contents in the depths of the system,” he said. “But the five main things will always be on the first physical layer. That’s very important.”