Volkswagen’s joint venture with FAW in China has achieved significant cost savings on the ID.4 through their latest promotional partnership. The electric SUV’s starting price is set at 145,900 yuan, approximately $20,060.
Volkswagen slashes ID.4 pricing to boost demand in China’s competitive electric vehicle market.
When Volkswagen unveiled the ID.4 in China in January 2021, its starting price was set at 193,900 yuan ($26,700), making it an attractive offering for local electric vehicle enthusiasts.
The German automaker operates in China through two successful joint ventures: SAIC-Volkswagen and FAW-Volkswagen. Volkswagen’s ID.4 and ID.6 electric models are offered in two distinct versions through the company’s enterprise alliances.
When Volkswagen launches a brand-new model, its joint-venture partners typically manufacture it in China under various model names, distinct from the original product.
While FAW-Volkswagen manufactures the ID.4 CROZZ and ID.6 CROZZ, SAIC-Volkswagen markets the ID.4 X and ID.6 X models. The company has recently introduced two new electric vehicles: the ID.Subsequent, a joint effort with SAIC-VW, as well as the ID.7 Vizzion, developed in collaboration with FAW-VW.
Volkswagen’s joint venture with FAW has introduced price reductions for its ID.4 model in China, as the country’s electric vehicle market becomes increasingly competitive and pricing pressure intensifies amid new market entrants.
Built on Volkswagen’s modular electric drive matrix (MEB) platform, the ID.4 comes in two configurations: rear-wheel drive and all-wheel-drive options are available.
The ID.4 CROZZ offers four battery options: 425 km, 554 km, 600 km, or 442 km of combined local cycle testing (CLTC) range.
The German-Chinese joint venture SAIC Volkswagen has significantly reduced the prices of its ID.3 electric vehicle as of July 1, with the aim of making the model more competitive in the market. The historic low value of the currency plummeted to 125,900 yuan, approximately equivalent to $17,500, representing a staggering 16% decline from its previous peak.
In its final month of pre-orders, Volkswagen’s highly anticipated ID.3 electric vehicle garnered an impressive tally of more than 10,000 reservations, thanks to a strategic pricing promotion that clearly struck a chord with potential buyers. ID.3 gross sales skyrocketed from 1,819 units in June to a whopping 7,378 vehicles in July.
| January | February | March | April | Might | June | July | |
| VW ID.3 | 1,614 | 1,062 | 3,091 | 3,523 | 2,556 | 1,819 | 7,378 |
| VW ID.4 | 1,667 | 2,320 | 3,963 | 5,240 | 6,260 | 5,525 | 4,031 |
Volkswagen’s ID.4 offering closely mirrors that of the ID.3. The automaker initially stated that approximately 3,000 vehicles would qualify, but the criteria may be expanded further. Volkswagen unexpectedly capped pre-orders for its ID.3 electric vehicle at 7,000 units initially, but ultimately extended the deadline to accommodate demand, with a total of over 17,000 units eventually being reserved.
Electrek’s Take
As Volkswagen’s promotional initiatives continue to drive sales, the question remains: how sustainable are these efforts in the long term?
To stay competitive with emerging rivals like BYD and Tesla in the region, the company seeks to reduce costs. In stark contrast to their electric vehicle (EV) rivals, Volkswagen is unlikely to reap significant profits from these cars, especially given the competitive pricing.
Will we keep you updated on the latest changes to Volkswagen’s pricing strategy? Examine again for more information.
