Volkswagen ID.3 sees a significant boost in sales following recent price reductions.

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【Summary】Volkswagen ID.3 sales in China have surged over 300% after the automaker cut prices by 16% last month. The lower prices resulted in a significant increase in sales, with 7,378 units sold in July compared to 1,819 units in June. This surge in demand comes as Volkswagen faces tough competition from other electric vehicle makers in the Chinese market. Despite the increase in sales, the ID.3 still lags behind models from BYD in terms of overall sales numbers.

FutureCar Staff Aug 17, 2023 12:09 AM PT

Volkswagen ID.3 sees a significant boost in sales following recent price reductions.

The Volkswagen ID.3 has experienced a surge in demand after the automaker decided to reduce prices last month. This price reduction had a significant impact on sales, with a rise of over 300%.

In early June, Volkswagen announced a limited-time "historically low price" deal for its small ID.3 electric car, resulting in a 16% price cut. The new starting price was around 119,900 yuan ($16.6K), down from 142,900 yuan ($19.8K).

The price cuts have already had a drastic effect on Volkswagen ID.3 sales in China. According to CarNewsChina, sales climbed to 7,378 units in July, representing a staggering 305% increase from the 1,819 units sold in June. This not only signifies 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 automaker 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 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, delivering 170 hp (125 kW) and 310 Nm peak torque. With a 57.3 kWh battery pack, it 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 due to 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 terms of sales figures for July.