Volkswagen of America reported lower overall vehicle sales in 2025, even as its electric models posted year-on-year growth, highlighting a widening gap between battery-electric and combustion-powered offerings in the U.S. market.
The German automaker said total U.S. deliveries fell 13% in 2025 from a year earlier, with the decline deepening to nearly 20% in the fourth quarter. Sales of all gasoline-powered Volkswagen models declined over the year, while both battery-electric vehicles in its U.S. lineup recorded increases.
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The Volkswagen ID.4 compact SUV delivered 22,373 units in 2025, up 31.4% from 17,021 vehicles sold in 2024, according to the company’s year-end report. The retro-styled Volkswagen ID. Buzz, which entered the U.S. market late in 2024, also posted a full-year increase after gaining a complete sales year, although quarterly growth was modest.
Volkswagen said the gains in electric models helped offset steeper declines across its internal combustion lineup. Passenger car sales fell 26% year over year, while overall SUV sales declined 8.9%, figures that would have been weaker without the contribution from electric vehicles, which Volkswagen categorizes within its SUV segment.
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Despite the annual increase, electric vehicles remained a small portion of Volkswagen’s U.S. sales mix. Battery-electric models accounted for about 8.6% of the brand’s total U.S. deliveries in 2025, below the overall U.S. market average, which hovered slightly above 10%.
Fourth-quarter electric vehicle sales were weaker across the industry, including for Volkswagen. ID.4 deliveries fell sharply in the final three months of the year, reflecting demand that was pulled forward earlier in 2025 ahead of changes to U.S. federal incentives.
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Volkswagen has confirmed that the ID. Buzz will not return for the 2026 model year in the United States, while the ID.4 is scheduled to receive a further update in 2026. The company has not provided detailed guidance on how its U.S. electric vehicle strategy may evolve following the 2025 results.
