Volkswagen ID.3 sales spike 300% following recent price reductions

Home > Industry Analysis > Content

【Summary】Volkswagen's decision to reduce prices for the ID.3 electric car has led to a significant surge in sales, with a 300% increase in July compared to June. The price cut in China, where VW has been facing tough competition, resulted in a starting price of around $16.6K. While the ID.3 saw impressive growth, it still trails behind rival models from BYD in terms of sales. It remains to be seen if VW will implement similar price cuts for its other models in the region.

FutureCar Staff Aug 15, 2023 10:00 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 resulted in sales increasing by 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%. As a result, the starting price dropped from 142,900 yuan ($19.8K) to around 119,900 yuan ($16.6K) in the Chinese market.

The impact of the price cuts on Volkswagen ID.3 sales in China has been drastic. CarNewsChina reports that sales climbed to 7,378 units in July, representing a staggering 305% increase compared to the 1,819 units sold in June. This not only signifies 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 automaker lost ground in the Chinese market, which it once dominated. Competing electric vehicle manufacturers, including BYD, Tesla, and NIO, continue to experience higher demand in the region.

At VW's general meeting in May, shareholders raised 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 is equipped with a single rear electric motor with 170 hp (125 kW) and 310 Nm peak torque. It also features a 57.3 kWh battery pack, providing 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.

After witnessing the significant increase in ID.3 sales due to the price cuts, it remains to be seen if Volkswagen will apply the same strategy to 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 sales figures for July.