Volkswagen raises vehicle prices significantly
Volkswagen has announced that it will be increasing prices for its combustion engine (ICE) models by an average of 1.5% starting August 21, 2025. However, the price of its ID. series electric vehicles (EVs) will remain unchanged.
This strategic decision is aimed at narrowing the purchase price gap between combustion and electric cars, in an effort to encourage more EV adoption. The move comes as production costs for EVs have decreased, allowing Volkswagen to pass savings to customers.
The price increase is happening during a time when every euro counts, and the pressure to avoid CO2 penalty payments is the background for the price increase in combustion engine models. Interestingly, the T-Roc is the only combustion engine model not affected by the price increase.
The average price increase of 1.5% is below the July 2025 inflation rate in Germany of 2%, indicating a cautious rise. Optional extras, including special paint finishes, sports packages, design packages, and light packages, will cost more in the future, regardless of the drive type.
Volkswagen is actively promoting the sale of vehicles with alternative drives, and the strong performance of the EV market is evident. In the first half of 2025, around 52,500 newly registered electric cars of the brand were reported by the Federal Motor Transport Authority. The share of electric cars of all new registrations of VW passenger cars is around 18 percent.
The ID models have been leading in registrations in Germany in 2025[1][3][5], indicating a clear focus by Volkswagen on strengthening its electric division. Last year, combustion engine prices increased by 2.1 to 3.2 percent[4], but no new information about the inflation rate was provided in this paragraph.
It is worth noting that electric models like the ID.3 to ID.7 are also not affected by the price increase. Volkswagen is clearly focusing on its electrification push amid easing fleet emissions regulations.
[1] Volkswagen ID.3 leads in registrations in Germany in 2025
[3] Volkswagen ID.4 leads in registrations in Germany in 2022
[5] Volkswagen ID.5 leads in registrations in Germany in 2023
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