VW cuts prices of its ID. models in several European markets

A few days ago, the German carmaker announced that it is slashing prices in its home market, offering discounts of up to 7,735 euros until the end of March. This comes as Germany abruptly ended its EV subsidy programme.

Now, Volkswagen has announced an update of its product range and price reductions in other European countries. Interestingly, price reductions seem permanent and not limited to a certain time, like in Germany.

Let’s first look at France. There, VW is introducing two new equipment variants for its ID. model series – the entry-level “ID.” and a comprehensively equipped “Life Max” variant. In addition, the ID.4 and ID.5 are now available in France with a more powerful engine (APP550 electric drive). At the same time, VW is reducing prices so that almost all versions of the ID.3, ID.4 and ID.5 qualify for the 2024 environmental bonus, worth up to 5,000 or, for low-income households, up to 7,000 euros.

According to Automotive News Europe, the VW ID.3 Pro with a 58 kWh battery in the ID. trim level now starts at 39,990 euros in France. The variant with the larger 77 kWh battery sells from 44,310 euros. According to the portal, the cheapest version had been the Pro Performance at 42,990 euros. The ID.4 now starts at 43,990 euros, after costing over 51,000 euros at its market launch in France. The cheapest ID.5 is now available from 50,500 euros, the ID.5 Life Max from 51,500 euros, which (according to VW) is 8,150 euros less than the roughly equivalent 2023 Pro Performance version. The net advantage for buyers should amount to 11,260 euros.

VW fights for market share

“The complete overhaul of the ID series demonstrates Volkswagen’s ambition to offer very competitive models on the French electric market,” says Dorothee Bonassies, VW Brand Director in France, in an official Volkswagen press release. The carmaker needs to catch up in the EV sector there. The ID.3 and ID.4 recently only ranked 13th and 16th, respectively, in terms of EVs sold in France. The Top 5 in the 2023 ranking are the Tesla Model Y, Dacia Spring, Tesla Model 3, Fiat New 500 and the Peugeot e-208.

In Norway, which has the highest proportion of electric cars in Europe, VW is taking a similar approach with new equipment variants (“Businessline” and “Highline”), (electric drive) updates for the ID.4 and ID.5 and the offer of optional battery conditioning – the latter is especially interesting in light of the long, cold winters in Norway. The new entry-level model of the ID.3 is now available from as little as 358,000 Norwegian kroner (equivalent to around 31,500 euros) – compared to prices of more than 500,000 kroner in the past. Prices for the ID.4 now start at 413,000 kroner (about 36,000 euros) in Norway.

“We have Norway’s best electric model portfolio, popular prices and a highly competent dealer network close to customers all over the country. We have all the prerequisites to take back first place,” says Ulf Tore Hekneby, CEO of Harald A. Møller AS and Acting Head of Volkswagen Passenger Cars in Norway. “We do not collect third places. We say this not to be arrogant, but because we have completely different ambitions for Volkswagen in Norway, where the top podium is what counts. However, we realize that although we have great and attractive models, we have not had equipment variants and prices that have been popular enough to climb all the way to the top, as we have succeeded in doing in the past. That is why we have taken action.”

Incidentally, after the last new Volkswagen passenger car with a fossil fuel drive was ordered in Norway during Christmas 2023, the carmaker has only offered electric vehicles in Norway since 1 January 2024.

Conditions are also improving for buyers in Italy. According to Automotive News Europe, new equipment variants called Pro Edition Plus of the ID.3, ID.4 and ID.5 will be offered for 1,000 euros more than the Pro versions. Still, they will have an additional 9,800 euros worth of standard equipment. That means a price advantage of 8,800 euros for customers who value lavish equipment. For the new ID.7, the Pro Edition Plus will be the entry-level version and costs 1,300 euros less than the Pro version, but offers additional standard equipment worth 6,350 euros.

In Belgium, the ID.3 is now available for a list price starting at 39,990 euros and the IID.4 Pure Limited Edition will be offered for 39,649 euros. Both EVs thus qualify for government subsidies of up to 5,000 euros.

The improved ID. models are now also on sale there – and a new equipment variant is being offered. “But we will go one step further at the beginning of 2024,” says Gert Van Leeuw, Director of Volkswagen Import, in a VW press release. “Although there will be no car show, we will charge extremely competitive net prices during the classic “show period” at the beginning of the year. This will bring the base price for the ID.3, after all discounts, to €37,990, including VAT. With the premium from the Flemish Government we would get an ID.3 for €32,990.”

Favourable “EU” versions without market specifics

VW is also introducing two new equipment variants in Sweden (“EU” and “Edition”) and lowering prices at the same time. For example, the ID.3 Pro Performance Edition now costs 460,000 kronor (around 41,100 euros) compared to 479,000 kronor for the Pro Performance. The newly launched EU basic versions – without market-specific additional equipment – are now available from SEK 448,600 (ID.3) and SEK 512,900 (ID.4), equivalent to around SEK 40,100 and 45,800.

“We are further sharpening our entire electric car offer in connection with the fact that we are now opening the upgraded ID.4 and ID.5 for ordering. Already good electric cars have simply become even better. And we are happy to be able to offer them at an even more attractive price, not least through the Edition versions with “extra everything,” says Sten Forsberg, head of Volkswagen Sweden.

The parallel price campaigns in several markets are evidence of a certain compulsion to act. The VW brand delivered around 394,000 fully electric vehicles worldwide in 2023, corresponding to an increase of 21.1 per cent compared to the previous year. However, Volkswagen’s business with combustion cars remains very dominant. Tesla and BYD meanwhile achieve sales figures in entirely different dimensions. Tesla sold 1.81 million and BYD 1.57 million BEVs in 2023.

europe.autonews.com, media.volkswagen.fr (France), kommunikasjon.ntb.no (Norway), volkswagen-press.be (Belgium), pressrum.volkswagen.se (Sweden)