22:35 23-12-2025

VW returns to dealer-led EV sales for private buyers across Europe

Volkswagen is ending direct sales of electric cars to private buyers via its agency model across Europe. The decision follows talks with dealer associations, Handelsblatt reports. In Germany, the brand had already moved away from this setup last year.

According to VW board member for sales Martin Sander, the company is putting its weight behind the entrepreneurial role of dealers, a function he indicated cannot be replaced by a single sales approach. The agency scheme will remain in place for corporate and fleet customers, where the group considers it to have delivered steady results.

Introduced in 2020 and inspired by Tesla’s playbook, the agency model saw Volkswagen set EV prices and carry the financial risk, while dealers acted as intermediaries on slimmer margins.

The promise was lower costs and closer ties to buyers. In practice, hurdles emerged: the company had to keep thousands of unsold electric cars on its balance sheet, and the relief dealers were promised failed to materialize.

Running different sales setups for combustion and electric models also added unnecessary complexity. Despite earlier plans to broaden the agency approach, dealer pushback was substantial. As a result, Volkswagen is returning to a classic dealer-led format—a pragmatic pivot that reflects how strongly Europe’s mass market still relies on local initiative and relationships, and one that could shape how upcoming show debuts reach customers in the next few years.