German automotive giant Volkswagen has celebrated a major achievement by producing its one millionth electric vehicle at its Zwickau plant in Saxony, Germany.
This landmark event underlines the company’s commitment to electrification and sustainable mobility. The Zwickau facility not only manufactures electric vehicles for Volkswagen but also serves as a production hub for several group brands including Audi, Cupra, and Skoda. A total of six different electric models are assembled here, and the one millionth vehicle was the high-performance ID.3 GTX hatchback.
Although Volkswagen faced setbacks in recent years regarding electric vehicle production and sales, the company entered 2025 with strong momentum. Its EV sales in Europe have doubled compared to the previous year. Despite the surge in sales, profitability remains a concern. EVs currently account for 20% of sales, but their lower profit margins, compounded by reduced government subsidies in many European countries, are putting financial pressure on the brand.
Still, Volkswagen remains committed to its electrification strategy. It plans to increase profitability by launching more affordable models such as the ID.1 and ID.2. In addition, other entry-level models from group brands are on the way, including the Cupra Raval and Skoda Epiq.
However, the financial report for the first quarter reveals some challenges. While total group sales rose 0.9% to 2.1 million vehicles and revenues climbed 2.8% to €77.56 billion, operating profits fell sharply by 40.6% to €2.19 billion. With intense competition in China and potential tariff issues in the US under Donald Trump's trade policy, Volkswagen’s global expansion may face significant headwinds.