Volkswagen is set to invest $193 Billion (AED 708.8 Billion) to further its electric vehicle effort. Over the next five years, VW will invest heavily in electric vehicles in order to become more competitive in the lucrative EV market. A chunk of the investment will be used in the development of more advanced battery tech and more efficient and ethical procurement of raw materials.
Volkswagen is among the largest car manufacturers in the world. It is a large group of companies with several iconic automotive brands like Audi, Bentley, Ducati, Lamborghini, Porsche, Skoda, etc, all under its umbrella. Volkswagen certainly has the technology to produce great cars. However, the ongoing electric vehicle revolution needs more than just great technology.
The automotive industry is on the brink of a revolution. It is at a point where all major manufacturers in the world are either developing or have already developed their own electric vehicles. Volkswagen is one of those brands that have already developed and launched electric vehicles.
With vehicles like the ID.3, ID.4, ID.5 and their various sub-variants, VW has already proven that it can make great electric vehicles. In addition, several other VW group brands have their own electric vehicles. However, being dominant in the electric vehicle space will take more than just a few electric vehicles.
The leadership at Volkswagen is very well aware that the brand will have to leapfrog over the issues that currently plague EVs. These issues include range anxiety, slow charging times, and mostly unethical sourcing of raw materials. These are the exact issues that Volkswagen now aims to work on, with the planned investment.
Reports claim that over 60 percent of the company’s five-year investment budget has now been allocated to digitisation and electrification. This is in line with the ‘Strategy 2025’ electrification plan announced by Volkswagen in 2016.
Volkswagen is building multiple new factories in North America and in Europe to cope with the expected EV demand. When it comes to conventionally-powered vehicles, Volkswagen has been a force to contend with.
Now, the brand aims to clinch the title of the largest electric vehicle manufacturer in the world. That is a title currently held by Chinese electric car manufacturer BYD followed closely by the American EV brand Tesla. With the new investment announced, Volkswagen will take the competition to these two EV giants.
In the UAE though, Tesla has a strong foothold in the premium EV segment. On 16 March 2023, BYD announced its official launch in the UAE, bringing more options to EV buyers in the country. Will Volkswagen be able to dominate here too? Only time will tell.
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