Volkswagen ID.3 sales spike 300% following recent 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 made in response to Volkswagen losing ground in the Chinese market to competitors like BYD and Tesla. However, despite the growth in sales, the ID.3 still lags behind other models in the market. It remains to be seen if Volkswagen will implement similar price cuts for its other models in order to compete effectively.

FutureCar Staff Aug 16, 2023 7:02 AM PT

Volkswagen ID.3 sales spike 300% following recent 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 has resulted in sales increasing by 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-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 already had a drastic impact on Volkswagen's sales in China. According to CarNewsChina, ID.3 sales reached 7,378 units in July, marking 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 exceeded 5,000 monthly sales since its launch in 2021.

The decision to reduce prices came after Volkswagen faced a decline in the Chinese market, where it was once dominant. Other electric vehicle manufacturers in the region, including BYD, Tesla, and NIO, continue to experience higher demand.

Volkswagen's joint venture with 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 producing 170 hp (125 kW) and 310 Nm peak torque. It has a 57.3 kWh battery pack and a CLTC range of 450 km (280 miles).

Aside from the ID.3, Volkswagen's electric vehicle lineup in China primarily consists of the ID.4 and ID.6 models. However, these models did not experience the same surge in sales, with 4,031 ID.4 units and 1,513 ID.6 units sold last month.

After witnessing the significant increase in ID.3 sales due to the recent price cuts, it remains to be seen if Volkswagen will follow the same strategy with 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 units) and Yuan Plus (23,594 units) in July.