Volkswagen ID.3 sales spike after significant 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 China. The price cuts have helped Volkswagen regain ground in a market where it was losing to competitors like BYD, Tesla, and NIO. However, despite the sales growth, the ID.3 still lags behind other popular models in the Chinese market. It remains to be seen if Volkswagen will extend the price cuts to other models and if they can keep up with the competition.

FutureCar Staff Aug 12, 2023 9:22 AM PT

Volkswagen ID.3 sales spike after significant 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 had a tremendous impact on sales, resulting 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, slashing prices by 16%. As a result, the starting price of the ID.3 dropped from 142,900 yuan ($19.8K) to around 119,900 yuan ($16.6K).

The price cuts have had a dramatic effect on Volkswagen's sales in China. CarNewsChina reports that ID.3 sales soared to 7,378 units in July, a staggering 305% increase compared to 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 achieved monthly sales exceeding 5,000 units since its launch in 2021.

Volkswagen's decision to reduce prices came after the company experienced a decline in the Chinese market, which it once dominated. Other electric vehicle manufacturers in the region, such as BYD, Tesla, and NIO, continue to witness higher demand.

During VW's general meeting in May, shareholders expressed concerns 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: 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. It features a 57.3 kWh battery pack, providing 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 4,031 ID.4 units and 1,513 ID.6 units sold last month.

Considering the success of the ID.3 after the price cuts, 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 BYD 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, it still lags significantly behind the Dolphin (21,800 units) and Yuan Plus (23,594 units) in July.