Volkswagen wants to conquer China with its EVs and knows how to do it

Volkswagen has reduced the starting price of its electric SUV ID.4 to 139,900 yuan (approximately $19,300) in China, seeking to improve its competitiveness in a market marked by a fierce price war.

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This price adjustment occurs in a context where local manufacturers, such as BYD, are increasingly dominating. The BYD Atto 3 model starts at 116,800 yuan ($16,000) and offers advanced features and a competitive range.

Despite its efforts, Volkswagen has faced a significant decline in its sales in China, with a 10% drop last year.

Will VW be able to recover electric car sales in China?

The ID.4, which was its second best-selling electric model in the country, was surpassed by the smaller ID.3. A total of 37,491 units of the ID.4 Crozz were sold through FAW and 34,498 of the ID.4 X through SAIC, highlighting the growing competition in the electric SUV segment.

The base model of the ID.4 offers a range of up to 264 miles (425 km) thanks to its 52.8 kWh battery, while the Long Range variant reaches up to 373 miles (601 km) with an 80.2 kWh battery.

However, when comparing these numbers with the BYD Atto 3, which offers 267 miles (430 km) in its base version, it becomes evident that Volkswagen needs to continue innovating and lowering prices to maintain its market share.

Despite these challenges in China, the ID.4 experienced a surge in the United States, positioning itself as the third best-selling electric SUV last month, surpassed only by the popular Tesla models.

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This contrast in sales performance between both markets highlights the urgency with which Volkswagen must adapt to local demands and expectations to restore its relevance in the competitive electric automotive landscape.