Seeking to cement its lead in Europe and broaden its global reach, Volkswagen Group launched the “Electric Urban Car Family” on Sunday at the IAA Munich Mobility Show 2025. CEO Oliver Blume called the entry-level EV project a “true passion” and central to the Group’s goal of making mobility for everyone.
The announcement comes as Europe’s biggest carmaker navigates slowing EV uptake in Europe and the US, intensifying competition in China, trade tensions, and tighter global regulations.
Blume acknowledged that the environment remains challenging, with intense competition, declining European demand, fast innovation, and price pressure in China, and a slower EV ramp-up than expected in key markets.
In the past two years, Volkswagen has launched nearly 60 new models globally, holds a 28% share of the European BEV market, and reported a strong order book in its home region.
Improved quality and award-winning software solutions have helped strengthen brand confidence. Its Salzgitter battery cell plant is due to begin operations soon, while in China, the Group is rolling out locally developed models tailored for Chinese buyers. In the United States, a growth strategy is underway, with new EV launches planned for the next two years.
Blume said the company’s priorities remain lowering costs, boosting productivity, reducing complexity, and unlocking synergies across its ten brands. “We think in platforms and scale across brands, segments, and markets. Our design defines identity, from exterior to interface, and we combine these strengths with powerful partners,” he said.
Volkswagen has also pushed into autonomous driving, citing projects such as the ID. Buzz AD and Varia, which Blume said laid the foundation for entering a multi-billion-dollar global market. He added that the Group’s software-defined vehicle architecture — “a system that thinks, adapts, connects, and learns” — is now a key driver of future mobility.
He said that the breadth of Volkswagen’s portfolio — spanning motorcycles, entry-level EVs, vans, premium cars, and performance icons — provides a unique scale advantage, especially when combined with AI integration and global design expertise.
Blume noted that the Group was recently named the world’s most innovative carmaker by the Center for Automotive Management, calling it “a strong motivation for the steps ahead.” He said Volkswagen aspires to make the best automotive technologies accessible to everyone — fast, user-friendly, affordable, and reliable.
Concluding his address, Blume handed the stage to brand chiefs Thomas Schäfer, Klaus Zellmer, and Markus Holt, underlining Volkswagen’s cross-brand teamwork in what he described as a once-in-a-generation transformation.
“From entry-level to luxury, from Europe to the world, Volkswagen Group’s promise is clear: to bring the best of automotive technology to everyone,” Blume said.