Volkswagen Sends Warning Signals To Tesla, Is Ready To Produce 5 Crore Electric Cars

Volkswagen has declared its intentions to move to electric vehicles and apparently has set everything in place for the same. As per the company¡¯s chief executive Herbert Diess¡¯ recent interaction with the automotive press, Volkswagen already has the capability of producing up to 50 million electric vehicles over the years through its newly built electric car facility.

Now that¡¯s a huge number to be honest. But considering the fact that the company was able to sell 10.7 million vehicles in the last year alone, the 50 million figure might easily be achievable over a period of next 4 to 5 years. And to achieve this, Volkswagen has already set up its electric car manufacturing facility in China. It has even secured a battery source for the same and as per Diess, the company has ¡°the best setup strategy for the electric vehicles to come.¡±

Volkswagen China

Considering the scale of Volkswagen¡¯s expertise and mass-production setup in the automotive industry, it is poised to give a jolt to the currently top performer in the EV vertical, Tesla. Of course, Tesla is the one to push all the automotive giants to look at electric vehicles as a potential market. But not until it started eating into their sales, crossing giants like Mercedes-Benz and others in sale numbers.

Now that they have woken up after a long slumber, the decades-long established companies are doing everything in their power to grab a piece of the electric vehicle market. While luxury car makers like BMW, Audi and Mercedes-Benz are bringing electric variants to their ¡®luxurious¡¯ offerings, companies like Volkswagen, Renault and others are aiming at the entry-level products. This was also made clear by Volkswagen recently, when the company announced its entry-level electric car to be available at a price of $23,000 (Rs 16.7 lakh) post its production. This will certainly be a blow to Tesla¡¯s sales as the company is renowned for offering world class electric cars at very low base prices. Yet, the Model 3, Tesla¡¯s most pocket friendly offering, costs $45,000 (Rs 32.6 lakh) for the base variant.

Volkswagen ID Concept (Volkswagen)

For now, Tesla can enjoy an uninterrupted run, at least from Volkswagen¡¯s end, which is still going to take a year and a half to bring its first ¡®ID¡¯ electric series to the market.