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05.09.2023 11:30, Alexey Razin
German auto giant Volkswagen has had a historically strong position in the Chinese auto market, but as local electric car manufacturers have grown, it has begun to struggle with effective competitive positioning of its own products. The locally assembled Volkswagen ID.4 Crozz electric crossover recently dropped to $20,060 in China from a starting price of $26,700.
Image Source: Volkswagen
As explains CarNewsChina, this electric car entered the Chinese market in January 2021, it is assembled by a joint venture between Volkswagen and FAW. This is one of two partners of the German automaker in China, the second is the SAIC concern, which, through its joint venture with Volkswagen, also launches a certain range of electric vehicles on the local market. For example, a joint venture between SAIC and Volkswagen was involved in the recent price cuts for the ID.3 electric hatchback. Now it’s time to take similar measures to stimulate demand for the ID.4 Crozz, produced in conjunction with FAW. Crossovers of the ID.4 series are offered in China with rear-wheel drive or all-wheel drive, the CLTC range varies from 425 to 600 km.
As a matter of fact, the ID.4 and ID.6 electric cars are produced in various variations by both Volkswagen JVs in China, their prices and characteristics differ slightly, so the ID.4 Crozz price reduction campaign is aimed at improving the sales statistics of one particular car modification for the time being. . The discounted price is said to be for a run of 3,000 cars, but the ID.3 price cut in June was also limited, although in fact 17,000 electric vehicles were sold instead of the planned 7,000 copies at a reduced price.
In July, both Volkswagen JVs in China sold 4,031 ID.4s of all varieties. It is still difficult to judge how the price cut for the Crozz modification will affect the August and September statistics, but ID.3 sales in a similar situation quadrupled in a month after a 16% decrease in the cost of an electric car. How such incentives will affect the financial performance of Volkswagen and its partners in China is still difficult to predict, and some experts already fear that the company will start to work at a loss in order to maintain its position in China’s highly competitive electric car market.
2023-09-05 08:30:00
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