Volkswagen ID.3 sales spike following significant price reductions

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【Summary】Volkswagen's decision to cut prices on the ID.3 electric car has led to a surge in sales, with a 300% increase in July compared to June. The price cuts were made in response to Volkswagen losing ground in the Chinese market to other electric vehicle (EV) makers. The ID.3 now has a starting price of 119,900 yuan ($16.6K). However, despite the sales growth, the ID.3 still lags behind competitors like the BYD Dolphin and Yuan Plus EVs in terms of sales volume.

FutureCar Staff Aug 16, 2023 10:04 AM PT

Volkswagen ID.3 sales spike following 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 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, SAIC-VW, slashed prices by 16%, bringing the starting price down to around 119,900 yuan ($16.6K) from 142,900 yuan ($19.8K).

These price cuts have had a drastic impact on Volkswagen ID.3 sales in China. According to CarNewsChina, sales of the ID.3 reached 7,378 units in July, representing a staggering 305% increase from the 1,819 units sold in June. This growth not only marks a significant month-over-month increase but also the first time the ID.3 has exceeded 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 manufacturers in the region, such as BYD, Tesla, and NIO, continue to experience higher demand.

During VW's general meeting in May, shareholders expressed 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: 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 has a 57.3 kWh battery pack and 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.

Considering the success of the ID.3 after 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) and Yuan Plus (23,594) in terms of sales volume in July.