Volkswagen's EV sales rise in Europe, plunge in China

BERLIN (Reuters) -The Volkswagen Group's sales of battery-electric cars more than doubled in Europe in the first quarter but fell by more than a third in China, data showed on Wednesday, in a sign of the automaker's diverging fortunes in the electric car market.

While Europe's EV demand is picking back up after years of slow growth, China's electric car market remains fiercely competitive, with new EV-only entrants swiping market share from foreign carmakers.

Total sales fell in China by 7.1%, despite the carmaker still maintaining a strong share of the combustion engine market at 22%.

Mercedes-Benz and Porsche also reported a slump in China sales.

Volkswagen said it expected sales of its battery-electric models to gradually ramp up in coming months as it launches new versions of key models such as the ID.3 and ID.4X.

At the Shanghai Auto Show in April, the carmaker will premiere the first series production model of a new Audi brand to be launched this year, and showcase three VW models coming out in 2026.

In Europe, orders for Volkswagen vehicles, both electric and combustion engine, rose 29% in Western Europe compared to last year.

Battery-electric vehicle sales on the continent have risen substantially this year so far even as total car sales have fallen, data from the European Automobile Manufacturers' Association has shown, as new EU emissions targets and the launch of new models drive demand after years of slow growth.

Sales in the U.S. grew 6.2%, in a possible sign of customers frontloading purchases ahead of the implementation of 25% tariffs on car imports.

Around two-thirds of the VW brand's sales are composed of cars made in Mexico, and all its Porsche, Audi, and Lamborghini vehicles are imported from Europe, leaving it highly exposed to the brewing trade war.

(Reporting by Victoria Waldersee, Amir Orusov; Editing by Jamie Freed, Matthias Williams and Louise Heavens)