VW is slashing prices and revamping ID electric car lineup

08 January 2024

Volkswagen just took decisive step to compete better with Tesla and other electric vehicle makers by cutting prices and revising trim levels on its ID line of full-electric vehicles. Lower-priced versions of the ID.3, ID.4, and ID.5 are now available in Europe.

In France, the VW ID.3 Pro with a 58 kilowatt-hour battery is now available in the ID trim level for $42,910. With a larger 77 kWh battery, the price is $47,550. These prices represent a significant reduction from the previous lowest-price version, the Pro Performance, which was priced at $46,130. The ID.4 in ID trim now starts at $47,200, down from over $54,700 when it was initially launched in France.

In Norway, the ID.3 will now start at 358,000 Norwegian krona ($34,000), compared to over 500,000 krona in the past. The ID.4's starting price is 413,000 krona ($39,010).

In Germany, VW's largest European market, the automaker is funding EV subsidies following the government's abrupt withdrawal of support for incentives. The ID.3 now starts at $42,917, with reductions totaling up to $8,300 on some ID models, making them more accessible to a broader range of consumers.

In Belgium, where an EV bonus of €5,000 is available in the Flanders region, VW has "seriously revised downward" prices for ID.3 and ID.4, making them eligible for the incentive. In Sweden, VW has introduced two new trims to its ID models, an "EU" base version and an "Edition," offering enhanced features at lower prices.

Volkswagen now allows different countries to determine pricing and promotions independently. This approach reflects a pragmatic response to the diverse nature of the European EV market, where consumer preferences and incentives can vary significantly from one nation to another.

While the EV market has seen significant growth in recent years, it faces challenges. Some industry experts predict that demand for EVs might slow due to high prices and the ongoing development of charging infrastructure. Automakers are also grappling with the need to match the profitability of internal combustion cars, which could affect their pricing strategies.

Volkswagen's decision to cut prices and revise trim levels on its ID electric car lineup signals a determined effort to compete more effectively in the rapidly growing EV market. Volkswagen rolled into the EV era boasting about the superiority of its products, only for customers to quickly realize the truth was far less attractive. The price cuts are good news, let’s hope it’s not the case of “too little too late.”

Via