Volkswagen ID.3 sees a significant sales increase following price reductions.

author: FutureCar Staff    

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 remarkable 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 for the ID.3 dropped to around 119,900 yuan ($16.6K) from 142,900 yuan ($19.8K) under the SAIC-VW joint venture.

These price cuts have already had a drastic effect on Volkswagen ID.3 sales in China. CarNewsChina reports that sales of the ID.3 reached 7,378 units in July, representing a staggering 305% increase compared to the 1,819 units sold in June. This not only indicates 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 losing ground in the Chinese market, where it once dominated. Competitors such as BYD, Tesla, and NIO continue to experience higher demand for their electric vehicles in the region.

During VW's general meeting in May, shareholders expressed concerns about the automaker's lagging EV sales in China, which is its largest market. BYD surpassed VW in passenger sales in 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 producing 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).

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 7,378 units sold in July. The ID.4 and ID.6 models sold 4,031 and 1,513 units, respectively, last month.

Considering the success of the ID.3 sales following 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 increased sales of the ID.3, the model still lags behind the Dolphin (21,800 units) and Yuan Plus (23,594 units) in July.

FutureCar Staff