The Volkswagen Group has reached a major milestone in its global electrification strategy, announcing the production of five million electric drive units worldwide. The achievement highlights the rapid scale-up of battery-electric vehicle (BEV) technology across the Group’s brands and reinforces Volkswagen’s position as one of the world’s largest EV powertrain producers.
Production of the five million units spans multiple facilities, including Győr (Hungary), Kassel (Germany), Tianjin (China), and Zuffenhausen (Germany). Together, these plants form a tightly integrated technology and manufacturing network that enables Volkswagen to develop, industrialize, and produce electric drive systems at scale.
A key contributor is Volkswagen Group Components, whose Kassel plant alone increased electric drive production by around 24% year-on-year in 2025, reaching more than 850,000 units.
APP550: Volkswagen’s Most Popular Electric Drive
At the heart of this milestone is the APP550 electric drive, currently the Group’s most widely used motor. It powers several high-volume models, including the Volkswagen ID. family, Škoda Enyaq, and CUPRA Tavascan. To date, one million APP550 units have been produced at the Kassel facility.
Despite maintaining the same physical dimensions as its predecessor, the APP550 represents a major leap forward in performance and efficiency. According to Volkswagen, the drive system:
– Consumes around 20% less energy
– Delivers approximately 75% more torque
– Increases power output by around 40%
In series production, the APP550 produces up to 240 kW and 560 Nm of torque, translating into improved range, quicker acceleration, and noticeably lower noise levels. Its combined oil and water cooling system optimizes thermal management without the need for an additional pump, helping improve efficiency and durability.
In-House Pulse Inverter Marks Strategic Shift
Beyond production volume, Volkswagen is also deepening its control over key EV technologies. The Group has developed its first in-house pulse inverter, often described as the “brain” of the electric drive system. This component precisely controls energy flow between the battery and electric motor, directly affecting performance, efficiency, and driving behavior.
Thomas Schmall, Volkswagen Group Board Member for Technology, emphasized the importance of the move: “Producing five million electric drives is a milestone that underscores Volkswagen’s lead in both the ICE and BEV segments. By developing our own pulse inverter, we are strengthening technological sovereignty and ensuring high performance and quality for our customers.”
Bringing inverter development in-house is expected to enable faster innovation cycles, lower costs, and greater independence from external suppliers, particularly as EV volumes continue to grow.
Powering the Electric Urban Car Family
The new pulse inverter will play a central role in Volkswagen Group’s upcoming Electric Urban Car Family, which includes models such as the Volkswagen ID. Polo, Škoda Epiq, and CUPRA Raval.
These compact EVs will use the APP290 electric motor, developed and manufactured within the Group. The motor will support multiple output levels, ranging from 85 kW (116 hp) to 166 kW (226 hp), and is based on 400V architecture.
A key technical upgrade is the use of silicon carbide semiconductors in the inverter, which reduce energy losses and improve efficiency. For customers, this translates into longer driving range, better real-world performance, and improved everyday usability—especially important in urban and suburban driving scenarios.
A Scalable EV Future
With five million electric drive units produced and critical technologies increasingly developed in-house, Volkswagen Group is clearly positioning itself for the next phase of mass-market electrification. The combination of scale, vertical integration, and continuous efficiency gains strengthens the Group’s ability to compete globally—particularly in Europe, North America, and other Tier 1 EV markets.
