Volkswagen Sees EV Boom In Europe While Audi Battles Recall Woes Amid Tariff Turbulence

Volkswagen AG VWAGY VLKAF witnessed a robust uptick in its electric vehicle (EV) business across Europe during the first quarter of 2025 as demand for battery-powered cars continued to climb.

Volkswagen delivered 939,800 vehicles across Europe between January and March, marking a 3.7% year-over-year growth.

The gains were especially pronounced in Central and Eastern Europe, where deliveries jumped 7.9%. Western Europe followed with a 3.0% rise, while Germany, the automaker’s home turf, posted a 5.5% increase. The positive trend offset an anticipated drop in sales in China, USA Today reports.

Meanwhile, Volkswagen’s shares rose 8.2% after the U.S. paused new tariffs for 90 days, Reuters reports, bringing some relief to markets.

Also Read: Trump Pauses Tariffs After Yields Surge: ‘Bond Vigilantes Hit Another Homerun,’ Experts Point To Bond Market Panic For Reversal

However, a 25% tariff on auto imports is still in effect, which remains a concern for Volkswagen due to its heavy exposure.

Marco Schubert, a member of the company’s extended executive committee for sales, stated that strong performances in both the Americas and Europe compensated for the Chinese market slump.

Recall Alert For Audi Vehicles

Separately, Volkswagen’s luxury division, Audi, has recently initiated a recall campaign for over 44,000 vehicles in the U.S., affecting models from the 2021 production year.

The recall affects models including the SQ8, A6 sedan, A7, A8, Q7, Q8, RS6 Avant, RS7, RSQ8, S6 sedan, S7, S8, A6 Allroad, and SQ7.

The issue stems from a deteriorating flex-foil cable that can trigger a software error, potentially causing the digital instrument panel to go blank, USA Today reports. This malfunction could hinder access to essential driving data such as speed, warning indicators, mileage and gear position.

Resolution Plan And Customer Impact

As of March 24, Audi had received 2,285 customer complaints. Fortunately, no accidents or injuries have been linked to the issue.

According to a filing with the National Highway Traffic Safety Administration, dealerships will offer software updates free of charge to fix the problem.

Notification letters are scheduled to reach affected owners beginning May 30, 2025.

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