Volkswagen Is Now Receiving More EV Orders Than Combustion-Engine Car Orders in Germany

Volkswagen is seeing a major shift in customer demand in its home market, with pure electric vehicles now accounting for more new orders in Germany than combustion-engine cars. The change is prompting the automaker to increase EV production while canceling planned additional shifts at its massive Wolfsburg factory.

According to Automobilwoche, Volkswagen is adjusting production because the shift toward electric vehicles has happened faster than expected. Wolfsburg, the heart of the Volkswagen brand, is expected to produce around 580,000 vehicles this year rather than exceeding 600,000 as previously planned.

The 88-year-old factory currently builds models including the Golf, Tiguan and Tayron. Production of the Golf is scheduled to move to Volkswagen’s Puebla plant in Mexico in 2027.

While Wolfsburg faces reduced production, other German facilities are seeing stronger EV demand. Volkswagen plans at least two additional shifts at its Emden plant to increase production of the ID.7 liftback and wagon. Zwickau is also benefiting from demand for the ID.3 Neo.

The new ID. Polo is emerging as another important model for Volkswagen. The subcompact electric hatchback has already accumulated more than 40,000 orders across Europe. Built in Spain, the ID. Polo also won the Budget category at the 2026 German Car of the Year awards.

The changing demand comes as Volkswagen expands its lineup with smaller and more affordable EVs. Higher fuel prices are also providing another incentive for German drivers to move away from gasoline-powered vehicles.

However, stronger EV sales create a complicated financial picture for Volkswagen. Electric vehicles remain less profitable than comparable combustion-engine models, making the transition particularly challenging as the automaker carries out a major cost-cutting and restructuring program.

The manufacturing challenge is equally significant. EVs generally contain fewer mechanical components and require less labor to assemble than combustion vehicles. As a result, Volkswagen cannot simply replace every gasoline-powered vehicle with an EV and expect its existing production footprint to remain fully utilized.

Volkswagen has already announced plans to reduce production capacity and employment in Germany while increasing investment in electric vehicles. Additional lower-cost EVs are expected to arrive, potentially accelerating the shift in consumer demand.

The result is an unusual transition for Volkswagen. The company needs EV demand to grow, and demand is now growing strongly in Germany. But as customers move toward electric vehicles, factories built around combustion-engine production face increasing pressure to adapt.

Wolfsburg remains a major example of that challenge. For now, the factory continues producing gasoline-powered vehicles even as German customers increasingly place their orders elsewhere in Volkswagen’s electric lineup.

Volkswagen’s latest order data highlights how quickly consumer demand can change once more affordable EVs become available. The challenge now is aligning production capacity, employment and profitability with a market increasingly moving toward electric vehicles.