VW Group CEO Says Full EV Shift by 2035 ‘Too Early’

Volkswagen Group CEO Oliver Blume has cautioned against setting 2035 as the hard deadline for a complete shift to electric vehicles (EVs), saying the industry and society will need more time and flexibility.

“Today, 2035 is too early to switch 100% to electric mobility. We need, as a community, and as an industry, more flexibility. That has to be decided,” Blume said on the sidelines of the IAA Munich Mobility Show 2025.

Blume reiterated that Volkswagen will continue to invest in all propulsion technologies — internal combustion engines (ICE), hybrids, and EVs — rather than forcing an abrupt switch.

“We are optimizing our ICE models year by year. At the same time, we are introducing new hybrids like the Porsche 911 Turbo S and range extenders such as Scout. In the end, the market will decide,” he said.

In 2024, Volkswagen sold over 9.2 million vehicles globally, of which 7 million were ICE models, underscoring the challenge of converting its customer base to full electrification in just a decade.

Volkswagen has committed €180 billion between 2023 and 2027, with two-thirds earmarked for electrification and digitalization. The company has launched its first gigafactory in Salzgitter with a 40 GWh capacity, enough to power 500,000 EVs annually, and plans to build five more gigafactories in Europe.

Affordability remains a critical lever. At Munich, the Group unveiled its “Electric Urban Family” priced at €25,000, with a €20,000 EV slated for 2027. These models are designed to compete against low-cost Chinese imports such as BYD’s Seagull.

Blume’s caution comes as European policymakers debate the 2035 deadline for banning new ICE cars. EV adoption remains uneven: China is at 35% penetration, Europe is around 15%, the US at 9%, and India has accelerated to 4–5% in FY2025 from just 1% four years ago.

“Electromobility is a clear technology of the future regarding drivability and decarbonization. But we still need the mix, and then we have to decide step by step when we reach a new milestone,” Blume said.

By stressing the need for a phased, flexible approach, Volkswagen is signaling that while its long-term bet is on EVs, the next decade will still belong to a multi-technology mix — from ICE and hybrids to affordable EVs — tailored to market realities worldwide.