Volkswagen will return to selling electric vehicles through its traditional dealer network in Germany from 2026, ending its agency sales model for battery-powered cars. However, dealers will receive lower margins on electric models than on combustion-engine vehicles, which could narrow their ability to offer discounts, according to a report by Automobilwoche.
Starting in 2026, Volkswagen Passenger Cars plans to give its German dealers a base margin of six percent for both combustion and battery-electric vehicles (BEVs). But the total margin for BEVs will be two percentage points lower, at eight percent compared to ten percent for combustion vehicles, the report said. Dealers will also receive flexible performance-based bonuses.
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Volkswagen confirmed the revised structure but declined to share precise figures. “It is correct that the margin structure for BEVs will differ in future from that in the traditional combustion engine business,” said Achim Schaible, head of Volkswagen Germany. He added, “The entire automotive industry is undergoing profound change – this also has an impact on the logic of margins and bonuses.”
The automaker said the new setup should still benefit dealers compared to the current agency model, under which they receive a fixed four percent margin and a two percent variable commission per vehicle sold, with Volkswagen acting as the direct contracting partner to customers. Under the new approach, dealers will again sell electric vehicles directly to private buyers and small businesses on their own account, while wholesale transactions will continue through the agency model.
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Dealer margins play a key role not only in their earnings but also in their capacity to negotiate prices with customers. With BEV margins two points lower than those for combustion vehicles, discounts on electric cars may be smaller. Still, Schaible said the change would create “new scope for individual pricing and offers” compared to the current model.
Some dealers, however, have questioned whether the revised terms will be sufficient to make EV offers competitive. According to Automobilwoche, many retailers believe manufacturers must do more to ensure electric car pricing is attractive. “Dealers have said that manufacturers are now being asked more than ever to offer competitive prices,” the report noted. The new regulation applies only to the German market, Volkswagen’s largest in Europe, and could influence the company’s future sales strategies across other European countries.
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