Volkswagen slashes ID.4 prices in China, now starting at $20,000

In a new promotion, Volkswagen’s joint venture in China, FAW-VW, has drastically cut prices on the ID.4. The electric SUV now starts at 145,900 yuan ($20,060).

Volkswagen cuts ID.4 prices in China

When Volkswagen launched the ID.4 in China in January 2021, it debuted with a price tag of 193,900 yuan ($26,700).

The German automaker does business in the region through two joint ventures (JVs) – SAIC-VW and FAW-VW. The business alliances sell two versions of Volkswagen’s ID.4 and ID.6 electric models.

When VW launches a new model, often, both JVs will produce it in China under different model names.

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While FAW-VW produces the ID.4 CROZZ and ID.6 CROZZ, SAIC-VW sells the ID.4 X and ID.6 X. They also recently launched the ID.Next (SAIC-VW) and ID.7 Vizzion (FAW-VW) electric sedans.

Volkswagen’s JV with FAW announced the ID.4 price cuts (via Car News China) in China as the world’s largest EV market heats up with new competition and pricing pressure.

Built on Volkswagen’s MEB platform, the ID.4 is offered in two variants – RWD and four-wheel drive. The ID.4 Crozz is offered with 425 km, 554 km, 600 km, and 442 km CLTC range options.

The move comes after VW-SAIC significantly cut prices on the ID.3 electric car at the beginning of July. The “historical low price” offer started at 125,900 yuan (around $17,500), down 16% from its original price.

Last month, Volkswagen announced the ID.3 gathered over 10,000 orders following the pricing promotion. ID.3 sales jumped from 1,819 units in June to 7,378 in July.

Volkswagen’s ID.4 deal is similar to the ID.3 promotion. The automaker claimed only 3,000 vehicles are eligible, but it will likely be extended. VW said it would cap the ID.3 deal at the first 7,000 but let it run until over 17,000 units were sold.

Electrek’s Take

Although the price cuts did work to stimulate demand, how long can VW afford to offer these promotions?

The lower prices are needed to keep up with rising competition from other automakers in the region, such as BYD and Tesla. However, unlike these two EV leaders, Volkswagen is not likely to turn a profit on these vehicles, especially at such low prices.

We’ll keep you updated on the latest with Volkswagen’s pricing strategy. Check back for more info.