#Electromobility

The Volkswagen Group is strengthening its charging and fueling services through the merger of LOGPAY Transport Services GmbH, a subsidiary of Volkswagen Financial Services AG, and the mobility service units of Volkswagen Group Charging GmbH (Elli). This strategic merger lays the foundation for future growth by offering seamless mobility services and an expanded range of solutions to both business and private customers transitioning to e-mobility. The newly established Elli Mobility GmbH, as a result of this merger, will operate as a wholly owned subsidiary of Volkswagen Group Charging GmbH (Elli) starting (expected) in March 2025.

Audi delivered around 1.7 million vehicles worldwide in 2024. More than 164,000 of those were fully electric models. Reasons for this overall decline of almost 12 percent (8 percent for fully electric models) compared to the previous year included the challenging economic conditions, an intensely competitive market, and limited availability of parts. In addition, the new product portfolio is only gradually having an impact on global sales volumes.

In 2024, Porsche AG comprehensively renewed its product range, with a generation change for four out of the six model lines: the Panamera, Taycan, 911 and Macan. Porsche has grown in four out of five world regions and achieved historic records. The share of electrified sports cars increased from 22 to 27 per cent. Almost half of them were purely electric vehicles.

Despite strong headwinds, Volkswagen delivered around 4.8 million vehicles to customers worldwide last year (1.4 per cent fewer than in the previous year). Volkswagen was again the clear market leader in Germany with a market share of 19.1 per cent, according to the German Federal Motor Transport Authority (KBA).

Today, the Volkswagen Group has informed its retail partners in selected European markets that it will initiate a joint review of its sales model. While the ‘Direct to Customer’ approach with a Full Agency remains the long-term ambition, changing framework conditions might require changes in the short- to mid-term to ensure the best possible customer experience. Due to the slower transition to electric mobility across the industry, two sales models for private customers would need to be operated in parallel longer than originally anticipated: The Agency model for all-electric vehicles (BEVs) and the indirect sales model for vehicles with other drivetrains. Maintaining this high level of complexity for an extended period of time would be a key challenge for the sales organization. Therefore, a joint review process with the wholesale and retail organizations will start immediately to determine whether returning to an indirect sales model for BEVs might be a favourable alternative for the short- to mid-term. Results of this process are expected around the end of Q1 2025.

Volkswagen Group’s battery company PowerCo and QuantumScape (NYSE: QS) today announced they have entered into a groundbreaking agreement to industrialize QuantumScape’s next-generation solid-state lithium-metal battery technology. Upon satisfactory technical progress and certain royalty payments, QuantumScape will grant PowerCo the license to mass produce battery cells based on QuantumScape’s technology platform.

The Volkswagen Group brand Elli presents a significant product innovation for charging EVs. The new Elli Charger 2 is equipped with a wide range of services, enables significantly reduced charging costs, and is characterized by a perfectly coordinated ecosystem. Volkswagen customers can now purchase their electric vehicle, charger, and electricity tariff in an easy and integrated manner from a single source. In the future, they will also be able to purchase a solar panel system via selected Volkswagen sales channels. As part of the product launch of the new charger, Elli today announced a strategic partnership with the European solar panel provider Otovo to offer e-mobility customers holistic and innovative energy solutions for their home.

The Volkswagen Group is entering a new business segment with the Elli charging and energy brand and will develop, build and operate large-scale stationary storage systems together with partners along the value chain. In the future, Elli's industrial energy storage systems will be used to supply customers and for arbitrage transactions on the electricity market. In this way, Elli is driving the transformation into a smart energy company and making a significant contribution to stabilizing and increasing the efficiency of the power grids. First Elli battery storage projects could be set up as early as next year.

The Board of Management of the Volkswagen Group has decided to make all-electric entry-level mobility more widespread. The Brand Group Core will bring affordable electric vehicles from Europe, for Europe, into the market. The world premiere is scheduled for 2027. Volkswagen has been working for some time to offer compact, particularly inexpensive electric vehicles in the price range of around 20,000 euros. In this way, the Group's volume brands are fulfilling their promise to create mobility for all and continue to facilitate the entry into e-mobility. With its brand diversity, the Volkswagen Group also assumes a social responsibility for affordable, sustainable mobility.

Volkswagen Group's subsidiary Elli, airborne wind turbine manufacturer EnerKíte, and the Technical University of Braunschweig present groundbreaking research at the Hannover Messe, which could enable energy-autonomous charging for electric vehicles in the future. High-tech kites "harvest" strong and steady high-altitude winds, converting them into electricity. The energy is stored in Elli's Flexpole fast-charger and can be used to charge EVs. The project is funded by the Federal Ministry of Education and Research and coordinated at the Open Hybrid LabFactory Campus in Wolfsburg.