By 1954 Volkswagen production was picking up speed, and 202,174 cars were sold worldwide, with 197,620 sedans and 4554 cabriolets. U.S. buyers purchased 6344 cars. Finally, the semaphore arm turn signals were consigned to history in the U.S. and the Beetle received flashing turn signals. An oil-bath air cleaner was fitted to the carburetor, heater vents were increased in size and the 6-volt generator raised from 130 watts to 160. Road & Track magazine, while generally favorable, did warn about “alarming” oversteer, which would haunt the Chevrolet Corvair later. Volkswagen added twin sun visors and a passenger grab handle. Wipers were silver painted instead of chrome.

The standard 1954 Volkswagen Beetle’s price jumped to $1395, but other models were reduced. The Deluxe was now cost $1495, the Sunroof Sedan $1575, and the Cabriolet price was slashed to $1995. Paint options in 1954 were reduced to seven choices: Black (L41), Iceland Green (L213), Jupiter Gray (L225) and only on the Standard model, Strato Silver (L227), Texas Brown (L271), Light Beige (L275), and Ultramaroon (L276). Cloth interiors were now Beige, Green, Gray or Slate Blue. Leatherette interiors were a combination of Beige and Red Beige, Green Beige, or Black. Headliners were still Beige or Gray and carpets could be Gray Beige, Gray Blue or Honey Brown, depending on body color. Rubber mats were Black, as always.

Cabriolet colors for 1954 models changed in February 1955. Until then they were Black (L41), Poppy Red (L54), Parchment White (L81), Beige Green (L210), Congo Green (L219), Iris Blue (L232), Light Beige (L275) and Dolomite (L279). Top colors were Gray, Beige, Black, Green, Blue or Brown depending on paint color. Cloth interiors were Beige, Brown Gray or Blue and leatherette was Beige, Red Beige, Dark red, Black, Green, Green Beige Blue and Gray, in various combinations. Carpets were Brown or Beige.