APP550 is among the most efficient electric drive systems in its class
When it comes to electrification, scale matters. This week, the Volkswagen Group reached a decisive milestone: five million electric drive units produced worldwide. Beyond the symbolic number, the achievement signals how deeply e-mobility is now embedded in the Group’s global industrial system.
The five-million mark is the combined result of production at Győr, Kassel, Tianjin and Zuffenhausen — a network that mirrors Volkswagen’s broader strategy: develop key technologies centrally, industrialize them globally and deploy them across brands at volume scale.
A central pillar in this ramp-up is the Kassel plant, part of Volkswagen Group Components’ competence network. In 2025 alone, Kassel increased electric drive production by around 24 percent year-on-year to more than 850,000 units. That kind of growth reflects not only rising demand for battery-electric vehicles, but also the Group’s determination to keep core drivetrain expertise in-house.
Thomas Schmall, Volkswagen Group Board of Management member for Technology says, “Producing five million electric drives is a milestone that underscores Volkswagen’s lead in both the ICE and the BEV segments. Our global development and production network allows us to master all aspects of the electric drivetrain, accelerate innovation and ensure outstanding quality. In developing our first pulse inverter in-house, we are building up additional expertise and taking the “brain” that controls the in its class electric drive unit into our own hands. This not only safeguards high performance for our customers but also reinforces the technological sovereignty of the Volkswagen Group.”
Technically, the APP550 represents a substantial step forward in the volume segment. Despite retaining the same dimensions as its predecessor, it consumes around 20 percent less energy while delivering roughly 75 percent more torque and 40 percent more power. In series production, it reaches up to 240 kW and 560 Nm.
The result is tangible for drivers: improved range, stronger acceleration and lower noise levels. A combined oil and water cooling system optimizes temperature management without requiring an additional pump — a detail that underlines Volkswagen’s focus on efficiency gains not only in headline figures, but also in component integration.
If the motor is the muscle, the pulse inverter is the brain. Volkswagen’s next strategic move is to bring this key component fully in-house. The newly developed pulse inverter from Volkswagen Group Components will be deployed in future electric drive systems across multiple brands.
The rationale is clear: faster product development cycles, cost reductions and greater independence from external suppliers. More importantly, in-house control over power electronics strengthens the Group’s technological autonomy — a factor that is becoming increasingly relevant in a geopolitically complex supply environment.
The new inverter will also play a central role in the upcoming Electric Urban Car Family. Models such as the ID. Polo, the Škoda Epiq and the CUPRA Raval are set to benefit from silicon carbide semiconductors in the new APP290 electric motor. The use of this material promises improved efficiency, extended range and better everyday performance.
The APP290, based on 400V technology, is expected to cover performance levels from 85 kW (116 PS) up to 166 kW (226 PS), giving the Group flexibility to tailor output to different brands and customer expectations within the compact segment.
With 115 production facilities across Europe, the Americas, Asia and Africa and deliveries of 9.0 million vehicles in 2024, Volkswagen’s transformation is unfolding on a vast industrial canvas. In 2024, the Group generated EUR 324.7 billion in sales revenue and an operating result of EUR 19.1 billion — financial muscle that underpins its investments in electrification, digitalization and autonomous driving.
The five-million-drive milestone is therefore not just a technical footnote. It is a signal that electrification at Volkswagen has moved from pilot projects to industrial standard. By combining platform strategy, in-house power electronics and global production depth, the company is positioning itself not merely as a car manufacturer, but as what it calls a “Global Automotive Tech Driver.”
In an industry where competitiveness increasingly hinges on software, semiconductors and system integration, mastering the electric drivetrain — from motor to inverter — may well prove to be one of the decisive levers for the decade ahead.
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