Volkswagen wants half of its total global sales by the year 2025 to be SUVs and has as many as 30 models planned until the timeframe. The firm intends to rake in generous profits to fund autonomous and electric vehicle development.
Volkswagen is adamant about increasing the number of SUVs in its portfolio. The German automaker announced on Thursday that by 2025, it will offer more than 30 SUVs and crossovers globally. It also expects half of all Volkswagens sold around the world to be SUVs. Currently, one in every five new Volkswagens is an SUV, with the company expecting a healthy sales bump in the North and South American markets as well as China.
The Tiguan midsize crossover is reportedly among the top ten bestselling cars in the world, with nearly five million Tiguans sold since its introduction. The Touareg, VW’s biggest SUV, is inching steadily closer to the million-unit milestone. The company is selling larger crossovers like the Atlas, in addition to the new T-Cross subcompact crossover it introduced recently.
The T-Cross will be sold in China, Europe, and South America. Small SUVs are rapidly gaining popularity in developing markets, with other manufacturers like Renault and Ford offering profitable lower-end crossovers like the Duster and the Ecosport.
Why this sudden interest in selling SUVs all of a sudden? The reason is quite clear. Due to today’s high market demands for such vehicles, sport utility vehicles and crossovers are the new cash cows that rake in huge profits for manufacturers. Firms like Rolls-Royce and Ferrari are jumping on the SUV bandwagon realising the potential the segment holds when it comes to revenue. In a similar vein, Volkswagen wants SUVs to rack up profits for the firm so it can fund its autonomous and electric car development programs.
“SUVs are becoming increasingly popular with our customers throughout the world,” says Stackmann, “This is why we are consistently pursuing our current SUV offensive. It will be a key contribution to strengthening our core business so that we can invest the necessary billions of euros in mobility and autonomous driving,” said VW board member Jürgen Stackmann.