Volkswagen ID.3 experiences significant sales growth following price reductions.

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【Summary】Volkswagen's decision to lower prices for the ID.3 electric car has resulted in a surge in sales, with a 300% increase in July compared to June. The price cuts were implemented in an effort to regain ground in the Chinese market, where EV makers like BYD and Tesla continue to dominate. While the ID.3 saw significant growth, it still lags behind competitors in terms of sales volume.

FutureCar Staff Aug 22, 2023 10:27 AM PT

Volkswagen ID.3 experiences significant sales growth following 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, cutting prices by 16%. The new starting price became approximately 119,900 yuan ($16.6K), down from 142,900 yuan ($19.8K) previously.

These price cuts have had a drastic impact on Volkswagen's sales in China. According to CarNewsChina, sales of the Volkswagen ID.3 soared to 7,378 units in July, representing a staggering 305% increase from the 1,819 units sold in June. This not only demonstrates 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 reduce prices came after experiencing a decline in its market share in China, which it once dominated. Other electric vehicle manufacturers in the region, including BYD, Tesla, and NIO, continue to witness higher demand.

During VW's general meeting in May, shareholders expressed concerns about the automaker'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 is equipped with a single rear electric motor generating 170 hp (125 kW) and 310 Nm peak torque. With a 57.3 kWh battery pack, the ID.3 achieves a CLTC range of 450 km (280 miles).

Volkswagen's electric vehicle lineup in China primarily consists of 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.

Considering the success of the ID.3 following the price cuts, it raises the question of 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 increased sales of the ID.3, it still lags behind the Dolphin (21,800) and Yuan Plus (23,594) in terms of July sales.