VW to drop ICE models in Europe by 2035, Australian arm says local market unprepared

Volkswagen is set to end production of internal combustion engines for the European market by 2035, as it works to achieve a target of 70 per cent EV sales before 2030.

VW sales director Klaus Zellmer detailed the company's wider plan in an interview with Münchner Merkur this week, suggesting Europe will be the first step while other markets will require longer timelines.

"We will make our entire fleet CO2 neutral by 2050 at the latest," said Zellmer. "In Europe, we will exit the combustion engine vehicle business between 2033 and 2035, and a little later in the USA and China.

"In South America and Africa, due to the lack of political and infrastructural framework conditions, it will take a good bit longer."

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The ID.3 was unveiled as VW's first EV in 2019

South America and Africa are unlikely to be the only regions requiring a longer timeline, however. Speaking with Wheels today, Volkswagen Australia communications manager Paul Pottinger said the current local conditions surrounding EV policy would make it difficult to replace ICE models with EVs anytime soon.

“Despite the example set by the New South Wales Government’s well-reasoned and progressive EV strategy, the national framework does not yet exist for Australia to be prioritised in Volkswagen Group's global EV roll out," Mr Pottinger said.

"Then there are bizarre missteps such as the Victoria Government’s cash grab that actively discriminates against owners of plug-in hybrids while letting off 1990s-derived hybrids that run on high-sulphur petrol.

"Current conditions are not conducive to providing Australians a choice between EVs and conventional vehicles, a choice increasingly available in the Europe, North America and China."

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VW has already largely reduced its range of diesel vehicles in the wake of the Dieselgate saga and ever-tightening regulations in Europe

With VW's ambition to reach 70 per cent EV sales by 2030 in Europe, it remains clear this target is only for the company's home continent – given the difference in EV strategies globally, not least in Australia.

VW Group's luxury brand Audi has already said it will end ICE production by 2025 for all markets bar China, with the goal of introducing electric-only models by 2026 en route to its carbon neutral target, hoping to achieve net zero vehicle emissions by 2050 in line with VW.

Still yet to arrive Down Under, Volkswagen has two EVs in its global range, the ID.3 and ID.4, released in 2019 and 2020 respectively with the hopes of both landing here in 2022.