Sales of Chattanooga, Tennessee-built VW ID.4s rose more than 60% in Q3 year-over-year – but it’s nowhere near its 2023 target.
Volkswagen of America released its third-quarter sales figures this week. Overall, the German auto giant’s sales in the US were down (-1.2%). Sales in its SUV category were down (-10.4%), and sales in the passenger category were up (58.3%).
Now let’s look at VW’s EV sales – that’s why we’re here, right? – or specifically, sales of the ID.4 SUV, since it’s the only EV Volkswagen manufactures in the US, at its Chattanooga plant.
But first, a little US-made ID.4 background. Pre-production ID.4s rolled off the lines at the Chattanooga factory for the first time in August 2021, and in July 2022, VW announced the start of the ID.4’s production, when it became the first VW EV to be built and sold in the US.
VW planned to reach an output of about 7,000 Chattanooga-made ID.4s per month in 2022, and then ramp up through 2023. In Q3, VW posted sales of 10,707 ID.4s. Compared to 6,657 in the same quarter in 2022, that’s a 60.8% increase. It was the first time ID.4 sales topped 10,000 in the US in a three-month period. But that average monthly sales of around 3,500 is half of the company’s 2022 output target.
Seeing how VW sold a total of 87,756 cars in Q3, that means the ID.4 made up 12.2% of its sales. That’s above the national average of around 6-7% EV sales – nice one.
So while those are positive milestones, we need to put it in context. Even though VW SUV sales were down overall, as I wrote earlier, VW still sold a lot more gas SUVs than ID.4s – 58,239 more, to be exact.
Volkswagen said in 2013 that it would be the “the world leader in electric and hybrid cars by 2018,” according to Green Car Reports. Hmmm.
This lag isn’t unique to Volkswagen. My colleague Jameson Dow wrote about GM’s Q3 numbers this week, noting that “compared to GM’s overall non-EV sales, the Q3 total of just over 20,000 EVs sold represents a rather small percentage for a company that has repeatedly stated it is ‘all-in’ on EVs.” Just under 3% of GM’s sales were electric.
Current ID.4 production capacity in Chattanooga is expected to be from 100,000 to 120,000 units per year as the automaker adds a third production shift, creating about 4,500 jobs.
Because the ID.4 is produced in Chattanooga, it qualifies for the full $7,500 federal tax credit via the Inflation Reduction Act. The ID.4 starts at an MSRP of $38,995. With that tax credit, it’s an attractive mid-range option for EV buyers. It’s even cheaper than the Tesla Model Y.
It’s got the US production capacity. It clearly has growing interest among car buyers – I would know, I own a 2023 ID.4 (and I love it). VW said it plans to roll out 90,000 ID.4s in 2023. It’s at 27,155 EVs sold in the US to date. It’s not looking good, Volkswagen.
Read more: Tesla embarrasses all automakers with these two charts
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