The Germany-based Volkswagen group has risen to become the leader of the EV market in Europe, where the company reports that it has a 26% market share in the first half of 2021. It's the Tesla Model 3 that has sold well in the region, but with local manufacturing. Volkswagen, a more recognizable and lower priced brand, has helped give it an edge over Tesla.
But as Elon Musk aims to start production at the Berlin Gigafactory by the end of the year, Volkswagen's lead could be short-lived.
In the fast-growing EV market, analysts say the Volkswagen Group benefits from a wide range of brands, which include luxury brands such as Audi, Bentley and Porsche. VW's most popular EV in Europe is the more affordable ID.3, a hatchback that starts at around $40,000. And in September 2020, Volkswagen released the ID.4, an SUV aimed at global markets that has since become Volkswagen's best-selling EV overall.
However, Volkswagen still lags behind Tesla globally. Tesla delivered more than 627,000 EVs in the first three quarters of 2021, while Volkswagen sold around 293,000 cars. But Volkswagen, along with traditional automakers and other EV startups, plan to release many new electric models in the next decade.