Volkswagen cuts ID.4 prices to under $20,000 in China as the ‘fierce’ EV price war heats up

After recent price cuts, Volkswagen’s electric ID.4 now starts at under $20,000 in China. Volkswagen looks to keep up in China’s “fierce price war,” but will it be enough? BYD and other Chinese EV makers are moving quickly.

Volkswagen cuts ID.4 prices amid China’s EV price war

Volkswagen’s Chinese joint venture SAIC-Volkswagen launched a new promotion on Wednesday for its fully electric SUV.

The ID.4 X is now available starting at just 139,900 yuan, or roughly $19,300. Volkswagen sells vehicles in China primarily through its two partnerships with SAIC and FAW. SAIC uses “X” to distinguish it from the ID.4 Crozz, sold by FAW-Volkswagen.

FAW-Volkswagen announced the same price reduction for the Crozz model last month. The move comes as the German auto giant aims to boost sales in China, one of its most important markets.

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Like many global OEMs, Volkswagen is quickly losing market share in China as homegrown brands like BYD continue dominating the market.

The ID.4 was Volkswagen’s second best-selling EV in China last year behind the smaller ID.3. According to data from CarNewsChina, FAW sold 37,491 ID.4 Crozz models while SAIC sold 34,498 of the ID.4 X.

The base “Smart” trim, starting at 139,900 yuan, gets up to 264 miles (425 km) CLTC range from a 52.8 kWh CATL battery pack. For 175,900 yuan ($24,200), the Long Range model, powered by an 80.2 kWh battery pack, gets up to 373 miles (601 km) range on the CLTC scale.

Volkswagen blamed China’s “fierce price war” after sales dropped 10% last year. The ID.4 competes in an increasingly crowded segment with lower cost rivals like BYD’s Atto 3.

The entry-level Atto 3 starts at just 116,800 yuan ($16,000) in China with up to 267 miles (430 km) CLTC range. The long range variant with up to 316 miles (510 km) range starts at 144,800 yuan ($19,900). BYD also just upgraded 21 of its top-selling models with new smart driving features, for free.

Meanwhile, ID.4 sales surged in the US last month after it went back on sale in early January. It was the third top-selling EV in the US last month behind Tesla’s Model Y and Model 3.

Source: CarNewsChina, SAIC-Volkswagen