Greenpeace and environmental activist Clara Mayer sued Volkswagen in a German court Tuesday (November 9).
The NGO accused the automaker of not doing its bit to fight climate change.
Greenpeace and Mayer have made a number of demands.
They want an end to production of internal combustion engine cars by 2030.
By that year they also want the German carmaker to lower carbon emissions by at least 65% from 2018 levels.
They have given VW eight weeks to consider those options.
The automaker did not immediately respond to a request for comment.
The company said in September it had committed to the Paris Climate Agreement in 2018 and had an ambitious electrification strategy.
The lawsuit follows two other climate-related cases.
A German ruling in May 2020 said the country was failing to protect future generations from the effects of climate change.
That same month the oil firm Shell was also ordered by a Dutch court to lower its emissions.