Volkswagen ID.3 sees a massive sales boost following 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 July compared to June. The price cuts were made in response to Volkswagen's declining sales in the Chinese market. However, the ID.3 still lags behind competitors such as BYD Dolphin and Yuan Plus EVs in terms of sales volume. It remains to be seen if Volkswagen will implement similar price cuts for its other models in the region.

FutureCar Staff Aug 14, 2023 9:53 AM PT

Volkswagen ID.3 sees a massive sales boost 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 had a substantial impact, resulting in sales increasing by over 300%.

In early June, Volkswagen announced price cuts for its small ID.3 electric car, offering a limited-time "historically low price" deal. The automaker's joint venture with SAIC-VW reduced 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 already had a drastic effect on Volkswagen ID.3 sales in China. According to CarNewsChina, sales of the ID.3 reached 7,378 units in July, 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.

The decision to reduce prices came after Volkswagen faced a decline in its dominance in the Chinese market. Other electric vehicle manufacturers in the region, including BYD, Tesla, and NIO, continue to experience higher demand.

Volkswagen's joint venture with 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. With a 57.3 kWh battery pack, the ID.3 has a range of 450 km (280 miles) according to the CLTC standard.

In China, Volkswagen's electric vehicle lineup 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 models and 1,513 ID.6 models sold last month.

After witnessing the increase in ID.3 sales due to the price cuts, it remains uncertain whether Volkswagen will implement similar strategies for its other models in the region. 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 terms of sales figures for July.