Volkswagen ID.3 sees 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 has had a major impact, resulting in sales increasing by over 300%.

In early June, Volkswagen announced a limited-time "historically low price" deal for its small ID.3 electric car, with prices being cut by 16%. As a result, the starting price for the ID.3 is now around 119,900 yuan ($16.6K), down from 142,900 yuan ($19.8K).

These price cuts have already had a drastic effect on Volkswagen's sales in China. According to CarNewsChina, sales of the Volkswagen ID.3 reached 7,378 units in July, a staggering 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'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, including 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 generating 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 CLTC standards.

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 significant surge in sales, with 4,031 ID.4 units and 1,513 ID.6 units sold last month.

Considering the surge in ID.3 sales, it remains to be seen whether Volkswagen will implement similar price cuts for its other models in the region. However, the automaker faces stiff 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 far behind the Dolphin (21,800) and Yuan Plus (23,594) in terms of sales figures for July.

FutureCar Staff