Volkswagen is currently facing a challenging paradox in its business journey. While its electric vehicle (EV) sales are growing, the company is seeing a sharp decline in profits. In the first quarter of the current financial year, Volkswagen Group reported an after-tax earnings drop of 40.6 percent, bringing in €2.18 billion, a significant decline despite a modest 1.4 percent increase in total vehicle sales, which reached 2.13 million units globally. This reveals the financial strain that legacy automakers face while transitioning from traditional combustion engine vehicles to electric mobility.

The core reason behind the dip in profits lies in the rising costs associated with Volkswagen’s shift to electric vehicles. The company is currently investing heavily in battery manufacturing plants, expanding EV production lines, and simultaneously managing its internal combustion engine (ICE) vehicle segment. These parallel operations require considerable resources, which are impacting the company’s bottom line even though vehicle deliveries are on the rise.

One of the highlights of Volkswagen’s EV journey is its achievement in Europe. The company has crossed a significant milestone with its one millionth EV rolling off the production line at the Zwickau plant in Germany. EV models such as the ID.4 and ID.5 have seen a sharp increase in popularity. In fact, sales of Volkswagen EVs more than doubled in Europe during the first quarter, with a combined total of 43,700 global deliveries from just those two models. This success helped Volkswagen surpass Tesla in terms of European EV registrations. By the end of March, 65,679 new electric Volkswagens were registered across Europe, marking a clear shift in consumer preference and a strong acceptance of Volkswagen’s electric lineup.

However, the story is different in China, which is the world’s largest EV market. Despite its global growth, Volkswagen has seen its EV sales in China fall by more than a third in the same period. This decline can be attributed to the aggressive competition from local players, particularly companies like Xiaomi, which are offering affordable yet high-performance EVs that better suit local preferences. Volkswagen is struggling to match the pace, innovation, and pricing strategies of these Chinese brands, leading to a loss in market share.

In India, Volkswagen’s EV strategy has yet to fully materialize. Although the company has shown interest in the Indian EV market, actual progress has been slow. Through its local subsidiary, Skoda Auto Volkswagen India, the brand has indicated plans to locally manufacture electric vehicles. Yet, there have been no concrete announcements or confirmed timelines for launches. The company’s progress is further hindered by an ongoing $1.4 billion tax dispute with Indian authorities. The issue revolves around alleged import misclassifications, which may have implications on how Volkswagen plans its manufacturing and import strategies going forward.

While India’s EV segment is growing quickly, with players like Tata, MG, and Mahindra actively launching and selling electric models, Volkswagen is falling behind. Stricter environmental regulations and emission standards are expected to pressure the automaker into accelerating its EV rollout in India. The brand does have the necessary technology, thanks to its global EV developments, but adapting and scaling that for the Indian market will require focused investment and local partnerships.

Despite its current challenges, Volkswagen’s long-term vision still rests heavily on the EV transition. The automaker has made clear commitments toward electrification and aims to be a global leader in the segment. The financial strain it faces now may just be part of a larger investment cycle, with potential returns to be seen over the next few years as EV adoption accelerates worldwide.

In summary, Volkswagen is in the midst of a demanding transition phase. Sales are increasing, particularly in Europe, where its EVs are gaining traction. However, the financial cost of this shift is impacting profits. Competition in markets like China is strong, and the Indian market remains underdeveloped for VW in terms of EVs. How well the company manages this transformation—balancing innovation, cost control, and market responsiveness—will define its success in the next era of mobility.

Article By
Sourabh Gupta

The iconic name in India’s automotive history – Tata Sierra – is returning soon! And, this time, in an all-electric form. But one of the things that SUV enthusiasts want to know is whether the tesla models in india will be a 7 seater. Dispelling the confusion, the company has announced that the upcoming Sierra EV will not have a room for 7 passengers. Instead the Lyriq will come in two different seating configurations depending on buyer perspective, a regular 5-seater and a 4-seater lounge variant.

The 5-seater format is likely to find favour with families and urban buyers in need of day-to-day use and access to Tata’s latest EV tech. On the other hand, the 4-Seater Lounge is a luxury offering for those who are driven and prefer comfort over the features of the 3-Seater. In addition, the rear seating area has been developed to offer passengers a high level of relaxation and personal space comparable to that found in the best-selling sedans.

What distinguishes the 4-seater lounge edition is the further emphasis on the individual seatings’ comfort level. Instead of a conventional bench seat in the rear, the lounge model is fitted with two individual rear seats with some nice comfort features to boot. These consist of sliding and reclining elements, ottoman-like leg rests, and concave seats with perforated surfaces. At the back, you should expect ambient lighting, personal entertainment screens, fold up table trays, and other more creature-comfort items that simulate the “business-class” experience on the ground.

The idea behind it is a response to changing trends in automotive and especially with urban luxury consumers there is a growing interest in the electric vehicle as a statement of style, sustainability and exclusivity. With such a premium offering, Tata is hoping to change the way EVs are perceived in the Indian market—as not just greener options, but as aspirational lifestyle products.

For the people who remember the Tata Sierra in its first incarnation, this is a dramatic change. The iconic Sierra made its debut in 1991 as a robust lifestyle vehicle with a distinctive design of large rear fixed glass windows, and a 3-door body style. The older design featured two front bucket seats and a three-passenger rear bench that seated three people as snugly as it also seated three. It had no rear doors and getting into the rear seat required tilting the back of the front seats. Though basic with regards to cabin trim, it was well outfitted for its era with power windows, AC, and power steering.

The new Tata Sierra EV, however, does come thoroughly modernised with not much in common with the older crop. It has embraced a design aesthetic that is a departure from rugged utility and towards graceful and tranquil interiors. Based on living room aesthetics, this EV will offer plush materials and layered textures with purposeful design. A suite of digital display features that includes a touchscreen infotainment system and a fully digital instrument cluster takes the SUV on par with global trends for electric vehicle design.

The Sierra EV will also be equipped with premium amenities such as a panoramic sunroof, ambient lighting, wireless charging, and perhaps distinct features like moss panels or ornamenting inserts. Attention to detail and relaxation are further expressed in the brand’s ambition to deliver a calm and visually beautiful space within the car.

Tata Motors has also suggested that an ICE-powered avatar of the new Sierra is also on the anvil. This will be in response to a wider reach of market that is not yet prepared to transition to electric but still want to experience the heritage and looks of the Sierra brand. The ICE version is expected to learn a lot of the styling and interior features from the EV variant, making it a preferred choice for enthusiasts of conventional engine.

Addressing the market launch, the Tata Sierra EV might also see the light of the day in the new market around August 2025. The base price is expected to vary somewhere between Rs. 25 – 30 lakh (ex-showroom). The Sierra EV, with its price range and unique positioning, is expected to serve buyers who are looking to purchase a premium locally-produced electric SUV blending nostalgia with advanced features.

So, in conclusion, the Tata Sierra EV isn’t to be a seven-seater, though the two targeted forms do something for both the practicalist and a luxury-end customer. Some of you may be disappointed with no 7-seater option, but this aggressive approach by Tata should help set a new record in terms of the Indian electric SUV benchmark as they seem more focussed on offering a more comfortable and premium experience.

Article By
Sourabh Gupta

Xiaomi’s EV unit once again performed well in strong competition among new-energy vehicle makers to sell 28,154 vehicles in April. That is also the seventh straight month, the company has retained delivery volume over 20,000 units, in terms of continuing demand despite the production constraint. Although this number is a bit lower than last month’s total of more than 29,000 units, the sustained delivery volume is a testament to the increasing demand for Xiaomi EVs.

March 28 last year, Xiaomi officially announced its debut in the EV space by unveiling its first electric sedan, the SU7. The car has generated an immense amount of buzz with the mainstream market and the auto industry overall, thanks in part to its range, aggressive pricing, and relatively similar price point compared to the Model 3. SU7 accompanies three models—Standard, Pro, and Max—providing diversified performance and features for diverse users. Mu that the Standard version will be available for a RMB 215,900 (about $29,690) starting price, with the Pro and Max versions coming in at RMB 245,900 and RMB 299,900, respectively.

The deliveries of the SU7 in the Standard and the Max versions were started in April [51] after its official presentation and a month after, in May, it was the turn of the Pro version. The SU7’s warm reception generated high demand, outstripping Xiaomi’s production capacity in no time. Now, new customers who order can expect to wait about 40 weeks to receive their vehicles. Compare this to the 30-week lead time that was standard back when demand for the vehicle began outpacing production – as you can see, production isn’t scaling fast enough to meet demand.

Expanding its extensive lineup, Xiaomi unveiled its latest electric sedan and it’s called the SU7 Ultra. The new model was first introduced on February 27, and it is a high-performance machine with a hefty 1,548 Ps of peak power. These numbers mean the SU7 Ultra is securely in the high performance electric vehicle market. Beginning at RMB 529,900, the vehicle is priced in line with its high-end orientation and cutting-edge technology. The SU7 Ultra first went on sale on March 2 and now the company is being injected with even more EV sales momentum.

Other than sedans, Xiaomi is set to join the electric SUV business — a market that’s still growing at an astonishing pace throughout the world. The company is likely to introduce the YU7, its electric SUV intended to take on Tesla’s super-hot Model Y, as soon as June or July. Although we don’t have official specs and pricing for this model just yet, the buzz around this model suggests that Xiaomi wants to blanket the electric passenger vehicle market, from mid-range priced sedans through to high performance cars, and on into family-carrying SUVs.

However, Xiaomi EV still confronts many difficulties, in particular on the materialization of mass production. The main limiting factor is still factory capacity. Punch Presses Operating at Maximum We have taken our company up to a new level, drawing every ounce of production capability out of existing facilities and still trying to meet unrelenting increases in customer demand. But as orders grow and sitidelivery timelines extend, some buyers’ patience is being tested. The situation should be something that Xiaomi are well aware of – one would expect they are in fact diligently working in the background to expand production and address this very discrepancy.

One thing you may have noticed is that, unlike many of its Chinese competitors, Xiaomi has not provided breakout shipment figures, at least not in the detailed format that for example Huawei has given us. Instead, it rather speaks more abstractly about numbers, such as “over 28k units”, which it could be that it has a well thought plan to keep options open or it does not want to signal the weight of its gameplay by making all too many comparisons in an overcrowded games market. Nevertheless, the numbers that are available tell a remarkably consistent story of continuous growth.

The demand for Xiaomi’s electric vehicles is not just a sign of the company’s reputation in consumer electronics but also a reflection of a broader change in the preferences of consumers who live their lives in the digital world. The company’s bet on the EV space was at the time considered a bold pivot, but it is now starting to pay off. Xiaomi has several models on sale today and more on the way, making it a quick upstart in heating up China’s hot EV industry.

When looking ahead, the real test for Xiaomi will be how well it can handle scale, quality control and continued innovation in a space whose pace moves at lichtning speed and whose consumers’ preferences are constantly shifting. If it can iron out the kinks in its existing production processes and further expand its product range, the company might grow to be an influential name in the international EV industry in the years ahead.

Article By
Sourabh Gupta