Volkswagen is set to retire two of its SUV models — the long-standing Touareg and the electric ID.5 — as it reshapes its portfolio in favor of smaller, more affordable electric vehicles. The move marks a strategic shift as the automaker looks to streamline offerings and increase competitiveness in the EV market.
According to a report from Autocar, production of the Volkswagen Touareg will cease in 2026. Having been on sale for more than two decades, the Touareg was first introduced in 2002 as a luxury SUV built in collaboration with Porsche. It shared core components and design cues with the Porsche Cayenne. With no direct successor planned, the Touareg’s exit will leave the Tayron as Volkswagen’s largest SUV in markets like the UK.
Also facing discontinuation is the ID.5, Volkswagen’s electric coupe-SUV that launched in 2021. Positioned as a sleeker, sportier counterpart to the ID.4, the ID.5 struggled to gain momentum amid stronger sales of its sibling. Production is expected to end in 2027. The decision aligns with Volkswagen’s strategy to prioritize more accessible EVs for broader market appeal.
Volkswagen plans to launch the ID.2 as early as next year, which could be branded as the ID.Polo, with a crossover version to follow. A smaller EV, the ID.1, is also in development and expected to debut in 2027. In addition, the automaker has discussed introducing a compact electric MPV — a potential successor to the Touran — although executives have suggested that crossovers and SUVs remain the company’s primary focus.
Despite leading EV sales in Germany during the first half of 2025, Volkswagen has faced challenges in other key markets. The discontinuation of the Touareg and ID.5 reflects a broader realignment as the company seeks to strengthen its position with a renewed emphasis on high-demand, lower-cost EVs.