Volkswagen ID.3 sales skyrocket following 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 significant drop in price resulted in a sales increase of over 300%.

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

These price cuts have had a dramatic impact on Volkswagen ID.3 sales in China. According to CarNewsChina, sales of the ID.3 reached 7,378 units in July, a staggering 305% increase from 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 the company lost ground in the Chinese market, which it once dominated. Other electric vehicle manufacturers in the region, such as BYD, Tesla, and NIO, continue to experience high demand.

During VW's general meeting in May, shareholders expressed concerns about the company'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: 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 with 170 hp (125 kW) and 310 Nm of peak torque. It has a 57.3 kWh battery pack and 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.

Considering the significant increase in ID.3 sales after the price cuts, it remains to be seen if Volkswagen will implement similar reductions 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 higher sales of the ID.3, the model still lags behind the Dolphin (21,800) and Yuan Plus (23,594) in terms of sales in July.

FutureCar Staff