Volkswagen, once a dominant force in China’s auto industry, has experienced a decline in market share as electric vehicle (EV) manufacturers like BYD, NIO, and Tesla steal the limelight. In a bid to attract buyers and regain its position, VW has decided to significantly reduce the price of its compact electric car, the ID.3.
For a limited period, VW will offer the ID.3 at an unprecedentedly low price, starting from as little as 125,900 yuan (approximately $17,500).
Introduced in July 2020, the ID.3 was Volkswagen’s first model from its all-electric “ID” lineup, which now includes the ID.4, ID.5, ID.6 (exclusive to China), ID.7, and the ID.Buzz electric van.
Following the discontinuation of the e-Golf in 2019, the ID.3 marked a new direction for VW and quickly gained popularity, becoming one of the most highly anticipated EVs of the year. It swiftly climbed the sales charts and emerged as a top-selling electric vehicle in Europe before entering the Chinese market in late 2021.
Since its arrival in China through the SAIC-Volkswagen joint venture, over 130,000 units of the ID.3 have been sold, making it one of the top-selling EVs among such partnerships.
Nevertheless, this success has not been enough to maintain VW’s leadership. At the company’s general meeting in May, shareholders voiced concerns about the increasing competition posed by EV manufacturers like BYD and Tesla in the Chinese market.
China’s automotive sector is rapidly shifting towards electric vehicles, with one out of every four vehicles sold in the region last year being electric.
During the first quarter, Volkswagen fell behind BYD in terms of passenger car sales, as demand for affordable EVs surged.
To stay competitive and stimulate demand, SAIC-Volkswagen announced a special offer for the ID.3 starting from now until July 31, 2023.
Customers in China can now purchase the VW ID.3 electric car at a starting price of 125,900 yuan (approximately $17,500).
Produced at SAIC-Volkswagen’s new energy factory in Shanghai, the ID.3 is Volkswagen’s smallest EV. Built on the VW MEB platform, it offers a range of up to 450 km (279 miles) on a single charge from its 57.3 kWh lithium-ion battery pack. The vehicle is equipped with a rear electric motor capable of delivering up to 170 horsepower and 310 Nm of peak torque.
At the 2023 Auto Show, SAIC-Volkswagen also unveiled the ID.Next, a new electric sedan concept that serves as the automaker’s version of the global ID.7 released in April.
To avoid further price competition in China, Volkswagen’s other joint venture in the country, VW-FAW, joined forces with over a dozen automakers to pledge their commitment to maintaining fair competition and pricing in the region.
