Volkswagen CEO says can't go all-in with electric vehicles just yet

Volkswagen Group CEO Herbert Diess in a recent summit shared his thoughts on the transition of the automobile industry towards electric vehicles. Diess explained that though the demand for electric vehicles is rising, the infrastructure to manufacture these EVs and support them is lagging behind. Many automakers have shared earlier that transitioning to electric vehicles will not happen overnight as involvement from various sectors such as governments, energy companies, climate organisations as well as consumers are needed.

Diess reinstated that to achieve a full-fledged change in the mobility sector demands huge investments and time. “We need the correct plants to be modified or built, the battery production capacity to be available, and to build a secure, sustainable supply chain. The customer needs the correct infrastructure to be put in place to live with the cars," the Volkswagen CEO was reportedly quoted.

The Volkswagen Group's Head also believes that the company as a whole has the potential to become the world's leading automaker in terms of sales of electric vehicles. Diess added the company's intention to become the world leader in EV sales by 2025, all thanks to the investments that are being made. He also highlighted the tight competition between Volkswagen and the popular EV company Tesla by reportedly admitting that he did not expect Tesla to be so fast in terms of their ability.

Dies also confirmed the plans it has for the small electric vehicle segment. There are three small EVs planned to come in 2025 which will be based on the company's MEB Small platform which is currently under development. He added, “The demand is there and the margins are there for small electric cars to be profitable."