To compensate, Volkswagen will have to slim down its model range, a step which will have implications for some of the carmaker's manufacturing plants, Diess said.
Volkswagen is doubling electric vehicle sales this year and will double them again next year, he said, adding that electrification will encompass even niche brands.
"Bentley is becoming within the next four to five years an electric brand," Diess said.
Volkswagen is also seeking to catch up with Alphabet's autonomous driving unit Waymo in the race to develop a self-driving vehicle.
The auto industry will see self-driving cars emerge in the next five to 10 years, Diess said, adding that he currently sees VW in second place behind Waymo in terms of technological capability for putting an autonomous car on the road.
(Reporting by Edward Taylor; Editing by Maria Sheahan and Tom Brown)
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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