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

author: FutureCar Staff    

The Volkswagen ID.3 has experienced a surge in demand after the automaker decided to lower its prices last month. This significant price reduction has 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. 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).

The impact of these price cuts on Volkswagen's sales in China has been drastic. According to CarNewsChina, sales of the Volkswagen ID.3 reached 7,378 units in July, marking a remarkable 305% increase compared to the 1,819 units sold in June. This not only represents substantial 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. Competitors such as BYD, Tesla, NIO, and others continue to experience higher demand for their electric vehicles in the region.

At VW's general meeting in May, shareholders expressed concern 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 has a range of 450 km (280 miles) according to the CLTC standard.

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 7,378 units sold in July. In comparison, the ID.4 and ID.6 models sold 4,031 and 1,513 units, respectively.

Considering the success of the ID.3 following the price cuts, it remains to be seen if 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 increase in ID.3 sales, the model still lags behind the Dolphin (21,800 units) and Yuan Plus (23,594 units) in terms of sales volume in July.

FutureCar Staff