Volkswagen Group executives said that automaker expects to have an easier time meeting 2021 EU emissions targets, after warning that it would fall short in 2020.
VW expects deliveries of zero-emission vehicles in Europe to double thanks to ramped-up production of new full-electric models on the MEB architecture, especially the VW ID4 and Skoda Enyaq compact crossovers. VW executives said the EV share of the group’s sales mix jumped to 5 percent to 6 percent currently from 2 percent to 3 percent earlier this year.
The group has sold about 140,000 full-electric vehicles this year, a nearly threefold increase over the previous year.
The EU’s CO2 emissions targets will be harder to meet next year for all automakers, as an exemption for 5 percent of high-emissions vehicles will be eliminated, and the “super-credits” earned by zero-emissions vehicles will decline to a factor of 1.67 from 2 this year, and 1.33 in 2022.
“We are making good progress, and next year should really be the year where we can demonstrate that our EV strategy is successful and materialize economies of scale,” VW Group CEO Herbert Diess said on Monday during a call with reporters and analysts.
VW’s top product strategist, Michael Jost, told Automotive News Europe last December that the CO2 targets would be challenging through 2021 but that the automaker should be well positioned to be carbon compliant thereafter as more EVs were launched, such as the coming ID Buzz microbus.
The push to meet a mandated cap of 99 grams per kilometer in 2020 has already had an impact on the company’s product mix.
The group’s sales boss, Christian Dahlheim, said VW’s increase in global market share this year — to around 13.7 percent from nearly 13 percent in 2019 — was coming from new battery-electric vehicles rather than internal-combustion engine models.
“We’re going to make most of the market-share gains from BEVs,” Dahlheim said on the call. "We do not gain significant market share from ICE.”
Diess warned that VW Group was likely to miss its EU target by around one gram per kilometer this year, even though it has joined an emissions pool with Chinese EV maker SAIC, which sells the MG brand.
VW CFO Frank Witter said in October that Volkswagen had set aside several hundred million euros to cover any EU fines.