In a significant move to stay competitive in China’s burgeoning electric vehicle (EV) market, Volkswagen’s joint venture with FAW, FAW-VW, has implemented substantial price reductions on the ID.4 electric SUV, marking a substantial price drop from its initial launch in January 2021.
The ID.4, which initially hit the Chinese market with a price tag of 193,900 yuan ($26,700), now boasts a much more appealing starting price of 145,900 yuan ($20,060), following FAW-VW’s price adjustment strategy.
Volkswagen operates in China through two prominent joint ventures, SAIC-VW and FAW-VW, both offering variations of Volkswagen’s popular ID.4 and ID.6 electric models. Typically, when Volkswagen introduces a new model, both joint ventures produce it in China under distinct model names.
While FAW-VW manufactures the ID.4 CROZZ and ID.6 CROZZ, SAIC-VW presents the ID.4 X and ID.6 X. Recently, they have also launched the ID.Next (SAIC-VW) and ID.7 Vizzion (FAW-VW) electric sedans, demonstrating their commitment to the electric vehicle segment.
Volkswagen’s decision to slash prices on the ID.4 within its FAW partnership comes as the global automotive giant faces mounting competition and pricing pressures in China’s burgeoning EV market, which is now the world’s largest.
The ID.4, built on Volkswagen’s Modular Electric Drive Matrix (MEB) platform, is available in two variants, offering both rear-wheel drive and four-wheel drive options. These variants provide customers with a choice of CLTC range options, including 425 km, 554 km, 600 km, and 442 km.
This price reduction initiative follows VW-SAIC’s recent price cuts on the ID.3 electric car, introduced at the beginning of July. This move was dubbed a “historical low price” offer, starting at 125,900 yuan (approximately $17,500), marking a 16% reduction from its original price.
Volkswagen’s ID.3 sales received a significant boost from this promotion, with over 10,000 orders placed in just one month. Sales skyrocketed from 1,819 units in June to an impressive 7,378 units in July.
Volkswagen’s approach with the ID.4 mirrors the successful ID.3 promotion. The automaker initially stated that only 3,000 vehicles would be eligible for the price cut, but as demand surged, it is likely that the promotion will be extended. Similar to the ID.3 campaign, VW capped the ID.4 offer at 7,000 units initially, but it may continue until well over 17,000 units are sold, underlining Volkswagen’s commitment to the rapidly evolving Chinese EV market.
