Volkswagen ID.3 sees a threefold increase in sales following price reductions

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【Summary】Volkswagen's decision to lower prices for the ID.3 has resulted in a surge in sales, with a 300% increase in demand. In China, sales of the ID.3 reached 7,378 units in July, up from 1,819 units in June. This growth comes after Volkswagen lost ground in the Chinese market to competitors like BYD and Tesla. The ID.3 is part of Volkswagen's EV lineup in China, which also includes the ID.4 and ID.6 models. Despite the increase in sales, the ID.3 still lags behind competitors in the market.

FutureCar Staff Aug 18, 2023 8:12 AM PT

Volkswagen ID.3 sees a threefold increase in sales following 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 led to 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, reduced prices by 16%, resulting in a new starting price of approximately 119,900 yuan ($16.6K) from 142,900 yuan ($19.8K).

The price cuts have already 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, a remarkable 305% increase compared to the 1,819 units sold in June. This not only represents 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 implemented these price cuts as a response to losing ground in the Chinese market, which it once dominated. EV makers such as BYD, Tesla, and NIO continue to experience higher demand in the region.

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 with 170 hp (125 kW) and 310 Nm peak torque. It has a 57.3 kWh battery pack, providing a CLTC range of 450 km (280 miles).

Volkswagen's EV lineup in China primarily consists of the ID.3, ID.4, and ID.6 electric 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 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 terms of sales figures for July.