Volkswagen’s US electric vehicle (EV) sales are on the rise, with the automaker announcing a significant increase in all-electric car sales in Q1 2023. The company sold 9,758 Volkswagen ID.4 EVs, a 254% increase YoY, and a slight increase over Q4 2022’s sales of 9,439 units. The ID.4 outpaced Ford’s Mustang Mach-E, which sold 5,407 units during the same period.
Despite the impressive growth in EV sales, Volkswagen’s total vehicle sales in the US were down compared to previous years, reaching only 67,853 units, a 4% YoY increase. In contrast, the company sold over 90,000 vehicles in Q1 2021.
However, the ID.4’s success has contributed to a significant increase in the all-electric car share of Volkswagen’s total volume. The Chattanooga, Tennessee plant ramped up ID.4 production, with all-electric car sales making up 14.4% of the company’s total volume, a new high.
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The locally-produced ID.4 is eligible for the full $7,500 federal tax credit and features batteries made by SK Innovation’s SK On in Georgia. The entry-level model starts at an MSRP of $38,995 (+ $1,295 DST), but after deducting the $7,500 incentive, it’s effectively $32,790, which has attracted customers.
Volkswagen has more than 40,000 reservations for the ID.4, and more than 47,000 units have been delivered to customers. With local production and incentives, Volkswagen’s EV sales are expected to continue growing. In the future, the ID.4 will be joined in the US by the Volkswagen ID. Buzz and Volkswagen ID.7.
In Europe, where the ID.4 is produced at two plants in Germany and expected to sell better, Volkswagen is set to further increase production. With five plants producing the ID.4 globally, the model is being manufactured on three continents.
