Volkswagen ID.4 Gets Big Price Cut to $20,100 in China
On September 4, Volkswagen’s joint venture in China, FAW-Volkswagen ID.4 CROZZ, announced a tempting deal in China: brand-new cars starting at just 145,900 yuan (around $20,100 USD). This is a significant drop in price, especially when you consider that the ID.4 initially cost 193,900 yuan (about $26,700 USD) when it first came out in China.
Volkswagen operates in China through two partnerships: SAIC-VW and FAW-VW, both owned equally by Volkswagen. It’s worth noting that the ID.3 is sold through SAIC-VW.
These partnerships offer two versions of the ID.4 and ID.6 models. FAW-VW handles the ID.4 CROZZ and ID.6 CROZZ, while FAW-VW deals with the ID.4X and ID.6X. The recent price cuts apply to FAW-SAIC’s ID.4 CROZZ. The ID.4 models from both partnerships are quite similar in terms of features and prices.
The VW ID.4 has been available in China for over two years, with sales starting in January 2021. This electric SUV is built on Volkswagen’s MEB pure electric platform and comes with cool features like parking assistance, door opening warnings, emergency assistance, AR-HUD, ID. Light, and an Internet of Vehicles system.
The ID.4 comes in two power versions: rear-wheel drive and four-wheel drive. The rear-wheel-drive version has a motor with 150 kW power and 310 Nm of torque. The four-wheel-drive model has motors at both the front and rear, with a combined power of 230 kW and 460 Nm of torque. Depending on the battery capacity, the ID.4 CROZZ can go anywhere from 425 km to 600 km on a single charge, as per China’s New Energy Vehicle Test Procedure.
Two months ago, Volkswagen lowered the price of the ID.3 in China, starting it at 119,900 yuan (approximately $16,500 USD), which was a 16% price drop. After this change, ID.3 sales in China soared. In June, they sold 1,819 units, and after the price cut in July, it went up to 7,378 units. Although specific sales figures for each model in August aren’t available, Volkswagen did confirm that they sold over 10,000 ID.3 units in China during that month, surpassing expectations.
Let’s now look at how Volkswagen’s electric vehicles (EVs) are doing in China.
Volkswagen is applying a similar strategy for the ID.4 as they did for the ID.3. They announced that only 3,000 units would benefit from this discount. However, some customers are cautious because the ID.3 discount initially had a cap of 7,000 units but continued after selling more than 17,000 units.
While these price cuts have boosted EV sales for Volkswagen in China, some industry experts are worried. They believe that these aggressive price reductions might lead Volkswagen to operate at a loss, which could impact both Volkswagen and its Chinese partners’ profits.
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