VW ID4 becomes Europe's top-selling full-electric car

BERLIN -- Volkswagen Group's ID4 became the first SUV to top the European battery-electric vehicle sales charts, according to figures from JATO Dynamics.

The ID4 topped the ranking in April with 7,335 sales during the month, ahead of the VW ID3 hatchback in second place with 5,735 sales, according to JATO's data. The Renault Zoe was No. 3 with sales of 4,015.

Strong sales of the ID4 pushed VW to claim 34 percent of the total full-electric car market in Europe in April, better than its overall standing across the European market, where VW's market share was just under 27 percent.

European new-car registrations jumped 256 percent in April on 1.03 million units but still down nearly a quarter from pre-pandemic levels.

Low-emissions vehicles accounted for 15 percent of the market, compared with 11 percent a year ago. Demand for full-electric models increased by 338 percent to 71,500 units. Registrations of plug-in hybrids rose 507 percent to 81,000.

The success of the ID4 highlights the beginning of the next phase of the electrification trend, said JATO senior analyst Felipe Munoz.

"Until now, most of the growth of EV demand has been driven by traditional cars such as the Tesla Model 3 sedan and hatchbacks," Munoz said. "However, there have been very few choices in the SUV segment, and we have to remember that SUVs are the drivers of sales/profits growth over the last 10 years. Without SUVs, the EVs will continue to be a niche segment."

He predicted the market share for low-emissions vehicle sales in Europe could reach 20 percent to 25 percent by the end of this year.

Munoz said while consumers are positively reacting to government incentives and boosting demand, full-electric cars are still very expensive, which makes government incentives a critical support element.

"As long as the incentives are there, I do not see why the growth should stop," he said. "We see the government's help as a major element in this story for at least the next 3 years. Therefore, the OEMs have relatively little time to decrease costs and make these cars affordable."

Munoz said the arrival of more models, more SUVs, and less expensive choices is helping too.

"With the upcoming electric SUVs, we should continue to see this growth, with the impact on ICE cars, which will continue to lose appeal, especially if they are penalized with more taxes," he said.

However, Munoz also pointed out the dilemma of keeping combustion-engine cars and boosting EVs is something the automakers need to address.

"Today, the push is on EVs, but none of them are able to finance electrification without the profits generated by the sale of ICE cars," he said. "That's why I don't see ICE cars as minor players in the short-to-mid-term.

VW aims to deliver 100,000 ID4 crossovers this year, with two-thirds of the vehicles destined for Europe and the remainder going to the U.S. and China. The automaker's electric-car sales are helping VW offset the decline in sales of traditional combustion models.