ID.3 sales spike 300% post Volkswagen's price reductions

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【Summary】Volkswagen ID.3 sales in China have surged over 300% after the automaker slashed prices by 16%. The price cuts resulted in a new starting price of around 119,900 yuan ($16.6K). In July, Volkswagen sold 7,378 units of the ID.3, a significant increase from the 1,819 units sold in June. However, the ID.3 still lags behind competitors like BYD Dolphin and Yuan Plus EVs in terms of sales volume. It remains to be seen if Volkswagen will implement similar price cuts for its other models in the region.

FutureCar Staff Aug 15, 2023 7:17 AM PT

ID.3 sales spike 300% post Volkswagen's price reductions

The Volkswagen ID.3 has experienced a surge in demand after the automaker decided to reduce prices last month. This significant price reduction resulted in a sales increase of over 300%.

In early June, Volkswagen announced a limited-time "historically low price" deal for its small ID.3 electric car. The company's joint venture with SAIC, SAIC-VW, slashed prices by 16%, bringing the starting price down to around 119,900 yuan ($16.6K) from 142,900 yuan ($19.8K).

The impact of these price cuts on Volkswagen's sales in China has been drastic. CarNewsChina reports that ID.3 sales reached 7,378 units in July, a staggering 305% increase compared to the 1,819 units sold in June. This not only represents significant month-over-month growth but also marks the first time the ID.3 has surpassed 5,000 monthly sales since its launch in 2021.

Volkswagen's decision to lower prices came after facing challenges in the Chinese market, where it was once dominant. Competing electric vehicle manufacturers such as BYD, Tesla, and NIO continue to experience higher demand in the region.

During VW's general meeting in May, shareholders expressed concerns about the company's lagging EV sales in China, its largest market. BYD surpassed Volkswagen in passenger sales during the first three months of the year and maintained its lead through June.

SAIC-VW offers two versions of the ID.3 in China: a base version starting at 119,900 yuan ($16.6K) and a higher-end trim priced at 149,900 yuan ($20.8K). The ID.3 features a single rear electric motor with 170 hp (125 kW) and 310 Nm peak torque. With a 57.3 kWh battery pack, it offers a CLTC range of 450 km (280 miles).

Volkswagen's electric vehicle lineup in China primarily includes the ID.3, ID.4, and ID.6 models. However, only the ID.3 experienced a surge in sales, with 4,031 ID.4 and 1,513 ID.6 models sold last month.

After witnessing the increase in ID.3 sales due to the price cuts, it remains to be seen whether Volkswagen will implement similar strategies for its other models in the region. However, the automaker faces tough competition from models like the BYD Dolphin and Yuan Plus EVs, which dominate the Chinese market. The BYD Dolphin starts at 116,800 yuan ($16.2K), while the Yuan Plus is priced at 134,000 yuan ($18.6K).

Despite the growth in ID.3 sales, the model still lags behind the Dolphin (21,800) and Yuan Plus (23,594) in terms of July sales.