Volkswagen’s compact electric car, the ID.3, has experienced a surge in orders in China after the company implemented significant price reductions last month. The automaker’s joint venture with SAIC, known as VW-SAIC, announced a limited-time offer for the VW ID.3 at the beginning of July, offering a “historical low price” starting at 125,900 yuan (approximately $17,500) until the end of the month. This move comes as Volkswagen faces increased competition in China’s evolving electric vehicle market.
As China’s largest electric vehicle manufacturer, BYD had outpaced Volkswagen in passenger car sales during the first three months of the year, extending its lead throughout the first half. In response, Volkswagen’s CEO, Oliver Blume, addressed shareholders’ concerns during the company’s general meeting in May, outlining plans to regain market share by collaborating with local partners to develop electric vehicles tailored to Chinese buyers. Volkswagen has also committed to investing EUR 1 billion to establish the “100%Tech&Co” business and development center, aimed at accelerating EV development by 30%.
The recent price cuts have proven effective in driving demand, with SAIC-VW reporting that ID.3 orders exceeded 10,000 last month. The ID.3, dubbed the “electric hot hatch” by Volkswagen, is built on the automaker’s MEB platform, offering a range of up to 450 km (279 mi) with a 57.3 kWh battery pack. The rear electric motor provides up to 170 hp and 310 Nm peak torque. As the competition intensifies in China’s electric vehicle market, Volkswagen’s strategic pricing and focus on localized EV development are key elements in its efforts to regain a foothold in the rapidly growing sector.
