Volkswagen Achieves Expected Goals in China with Price Reduction of Electric Cars

The German car manufacturer Volkswagen has achieved the expected goals in China with the price reduction of electric cars – the demand for the electric ID.3 in China has increased three times. Volkswagen reduced the starting price of the car by 16% in June. In absolute terms, this means a price reduction from 19.8 thousand dollars to 16.6 thousand dollars for a completely new ID.3. It should be noted that Volkswagen in China cooperates with the local car manufacturer SAIC.

As informed CarNewsChinathe results were immediate – in June VW was able to sell 1,819 units, then in July it already managed to sell 7,378 ID.3 cars, which is of course a huge increase, but it is the first time since the model was introduced in China that it manages to sell more than 5,000 in one month ID.3 units.

As early as May, Volkswagen shareholders indicated that the manufacturer was beginning to lose its position in China, where VW once dominated. The German auto giant is increasingly struggling to compete with Tesla as well as local Chinese automakers. The increase in sales volume in China can largely be written off directly to the discounts, but the question remains what VW will do in the future – whether similar discounts will be offered to other models and whether the manufacturer can hardly afford such a price policy in China in the long term.

2023-08-12 09:00:00
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