Volkswagen ID.3 sales spike after significant price reductions

Home > Industry Analysis > Content

【Summary】Volkswagen's ID.3 electric car has experienced a surge in sales of over 300% after the automaker lowered its prices. In China, VW's joint venture with SAIC cut prices by 16%, resulting in a significant increase in sales. The ID.3 sold 7,378 units in July, a 305% increase compared to June. However, VW still faces tough competition from other electric car models in the Chinese market.

FutureCar Staff Aug 14, 2023 7:01 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 lower its prices last month. This significant drop in price led to a sales increase of over 300%.

In early June, Volkswagen announced price cuts on its small ID.3 electric car, offering a limited-time deal with historically low prices. The automaker's joint venture with SAIC, SAIC-VW, reduced prices by 16%, resulting in a new starting price of approximately 119,900 yuan ($16.6K) from the previous 142,900 yuan ($19.8K).

These price cuts have already had a drastic impact on Volkswagen's sales in China. According to CarNewsChina, sales of the Volkswagen ID.3 reached 7,378 units in July, representing a staggering 305% increase compared to the 1,819 units sold in June. This growth not only signifies a significant month-over-month increase but also marks the first time the ID.3 has surpassed 5,000 monthly sales since its launch in 2021.

The decision to lower prices came after Volkswagen lost ground in the Chinese market, which it once dominated. Other electric vehicle manufacturers in the region, such as BYD, Tesla, and NIO, continue to experience higher demand.

During VW's general meeting in May, shareholders raised concerns 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: 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, delivering 170 hp (125 kW) and 310 Nm peak torque. It features a 57.3 kWh battery pack and offers 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 increase in ID.3 sales following the recent 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 higher sales of the ID.3, the model still lags behind the Dolphin (21,800) and Yuan Plus (23,594) in July.