Volkswagen Group has confirmed that it intends to pause its plans for direct-to-customer agency model electric vehicle (EV) sales and return to a dealer-based wholesale process.

The decision is as a result of a slower-than-expected take-up of EV sales in Europe and which applies to all parts of VW’s sales except Cupra – the SEAT spin-off brand has effectively been the pioneer in the VW Group for the agency process, which sees manufacturers selling cars directly to customers online and then paying dealers for the handover process.

In a statement VW Group said it had issued a notification to its retailer partners stating its intention to pause ‘direct to customer’ retail BEV (battery electric vehicle) sales for the short- to medium-term, and return to the wholesale model.

“The change would then apply to BEV orders from 1 April for Volkswagen, Volkswagen Commercial Vehicles and Audi, and 20 February 2025 for Škoda.

“Retail BEV Agency will continue for Cupra as the forerunner brand for agency since inception; there is no change or review planned for fleet agency; and full agency for all vehicles and drivetrains will be established in the Swedish and Irish markets.”

VW added that the slower than anticipated adoption of EVs would have resulted in two sales models running in parallel for longer than planned for. Maintaining such a level of complexity for an extended period of time would be challenging for its sales organisation, so it is starting a review process with the wholesale and retail organisations to determine whether returning to an indirect sales model for BEVs might be better short- to mid-term solution.

The Group indicated that it still intends to move to agency eventually and will make its decisions following the review process, which is expected to conclude around the end of quarter one this year.

VW Group first announced in November 2024 that it was considering pausing its agency plans, following the example of several manufacturers, including Jaguar Land Rover and the Stellantis Group, that have moved away from planned agency models.