Volkswagen ID.3 sales skyrocket after significant price reductions

author: FutureCar Staff    

The Volkswagen ID.3 has experienced a surge in demand after the automaker decided to reduce prices last month. This price reduction had a significant impact on sales, with a rise of over 300%.

In early June, Volkswagen announced a limited-time "historically low price" deal for its small ID.3 electric car, resulting in a 16% price cut. The new starting price for the ID.3 is now around 119,900 yuan ($16.6K), down from 142,900 yuan ($19.8K).

The price cuts have already had a drastic effect on Volkswagen ID.3 sales in China. According to CarNewsChina, sales of the ID.3 reached 7,378 units in July, a remarkable 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 reduce prices came after the company lost ground in the Chinese market, which it once dominated. Other electric vehicle manufacturers in the region, such as BYD, Tesla, NIO, and others, continue to experience 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 VW 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 of peak torque. It has a range of 450 km (280 miles) according to the CLTC standard, thanks to its 57.3 kWh battery pack.

In China, Volkswagen's electric vehicle lineup 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 units of the ID.4 and 1,513 units of the ID.6 sold last month.

Considering the increase in ID.3 sales after the recent 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 units) and Yuan Plus (23,594 units) in July.

FutureCar Staff