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

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【Summary】Volkswagen ID.3 sales in China surged over 300% after the automaker slashed prices by 16%. Sales climbed to 7,378 units in July, the first time it crossed 5,000 in monthly sales since launching in 2021. However, VW still faces tough competition from other EV models in the Chinese market, such as BYD Dolphin and Yuan Plus EVs, which sold significantly higher numbers in July. It remains to be seen if VW will lower prices for its other models in the region.

FutureCar Staff Aug 20, 2023 7:13 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 led to 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 (SAIC-VW) slashed prices by 16%, resulting in a new starting price of around 119,900 yuan ($16.6K), down from 142,900 yuan ($19.8K).

The price cuts have already had a drastic impact on Volkswagen's sales in China. CarNewsChina reports that ID.3 sales climbed to 7,378 units in July, a staggering 305% increase compared to the 1,819 units sold in June. This not only represents a 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 (EV) manufacturers in the region, such as BYD, Tesla, and NIO, continue to experience higher demand.

At VW's general meeting in May, shareholders expressed concern 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: the 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. It has a 57.3 kWh battery pack and a CLTC range of 450 km (280 miles).

Volkswagen's electric vehicle lineup in China mainly consists of the ID.3, ID.4, and ID.6 models. However, only the ID.3 experienced a surge in sales after the price cuts. In July, 4,031 ID.4 models and 1,513 ID.6 models were sold, which is significantly lower compared to the ID.3's sales.

Considering the success of the ID.3 following the price reductions, it raises the question of 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 Dolphin starts at 116,800 yuan ($16.2K), while the Yuan Plus is priced at 134,000 yuan ($18.6K).

Despite the increased sales of the ID.3, the model still lags behind the Dolphin (21,800) and Yuan Plus (23,594) in terms of sales figures for July.