Volkswagen is making waves in the fiercely competitive Chinese EV market, dropping the price of its ID.4 X electric crossover by a significant 13%. This move brings the starting price down to a mere 139,900 yuan (about $19,200 USD), a stark contrast to its 2021 launch price of 193,900 yuan ($26,700 USD). That’s nearly a 30% reduction, showing just how serious VW is about battling for market share in China.
The Joint Venture Strategy and Internal Rivalry
Volkswagen operates in China through a joint venture model, primarily with SAIC-VW and FAW-VW. To tell their models apart, SAIC adds an “X” to the name, while FAW uses “Crozz.” The ID.4 X from SAIC-Volkswagen cutting its price by 20,000 yuan ($2,700 USD) isn’t an isolated incident. Its sibling, the ID.4 Crozz from the FAW joint venture, saw a similar price drop earlier this month.
It appears Volkswagen is fostering a healthy internal competition between its partners. While the SAIC joint venture has seen more success overall, especially with the ID.3, which is exclusively an SAIC product, FAW actually outsold SAIC with the ID.4 last year. This aggressive pricing could be a direct response to stimulate SAIC-VW’s ID.4 X sales.
Trim Levels and Performance Specs
Let’s break down what these price cuts mean for buyers on different trim levels:
| ID.4 X trim name | Old price (yuan) | New price (yuan) | |
|---|---|---|---|
| Smart | 159,888 | 139,900 | |
| Smart Long Range | 195,888 | 175,900 | |
| Smart Extreme Long Range | 211,888 | 191,900 |
The entry-level ID.4 X Smart comes equipped with a 52.8 kWh battery from CATL, offering a respectable 425 km CLTC range. This rear-wheel-drive (RWD) variant features a single electric motor delivering 125 kW (168 hp) and a peak torque of 310 Nm. At its new price point of 139,900 yuan ($19,200 USD), it’s an incredibly compelling package.
For those seeking more range, the ID.4 X Long Range trim steps up with an 80.2 kWh battery, bumping the CLTC range to a substantial 601 km. The electric motor, also mounted on the rear axle, gets a power upgrade to 170 kW (228 hp), while maintaining the same 310 Nm of peak torque. This trim is now available for 175,900 yuan ($24,200 USD).
Sales Performance and Market Context
Last year, the SAIC-VW ID.4 X recorded 34,498 units sold based on insurance registrations. That’s about 3,000 units fewer than its FAW JV counterpart, the ID.4 Crozz. Despite that, the ID.4 X remains SAIC-VW’s second best-selling EV, trailing only the incredibly popular ID.3, which moved 93,816 units. This tells us the ID.3 is a true affordable EV darling in China.
While the Volkswagen ID.4 made headlines in the US in January by breaking into the top 5 best-selling EVs, its presence in China is a different story. The ID.4 X sold 1,020 units, placing it 128th, with the ID.4 Crozz adding another 889 units. Combined, these numbers would push them into the top 100 at 94th position. Clearly, Volkswagen has a tougher fight on its hands to dominate the competitive Chinese market. With Chinese EV makers constantly innovating and offering compelling products, Volkswagen will need to continue its aggressive strategies, perhaps even mirroring collaborations like their recent partnership with Xpeng for autonomous driving tech.
This price adjustment by Volkswagen is a clear indicator of the intense competition and rapid evolution within the Chinese EV landscape. It’s a market where innovation is constant, and pricing strategies are crucial for survival and success. Keeping an eye on how these pricing moves impact sales will be key to understanding the future of both Volkswagen and the broader Chinese EV space. Volkswagen also seems to be betting big on China with its new all-purpose R&D center.
