Volkswagen Adjusts Electric Vehicle Pricing Strategy Across Europe

Volkswagen Adjusts Electric Vehicle Pricing Strategy Across Europe

Automotive News Europe reports that Volkswagen subsidiaries in Italy have started displaying prices reduced by up to 3,000 euros. Additionally, there are substantial discounts on optional features (known as “customer-advantages”) of up to 8,800 euros. Similarly, in Norway, the price of a Volkswagen ID3 has been reduced by up to 11,000 euros compared to its launch price four years ago.

Last year, Volkswagen’s CEO stated that the company would not engage in a price war with Tesla, which had cut prices on all its models by up to 10,000 euros. However, due to declining sales of Volkswagen’s electric vehicles, the company ultimately decided to implement similar price adjustments.

Production Adjustments

In November, Volkswagen reduced production at its Zwickau, Germany EV factory, one of the largest with an annual capacity of 360,000 units. The facility produces models like ID3, ID4, ID5, Audi Q4-E-tron, and Cupra Born EV. This decision was a response to the decreased demand for these vehicles.

A Volkswagen spokesperson mentioned that the current special offers are tailored to the specific requirements of each market, influenced by governmental scrappage schemes. For instance, in France, Europe’s second-largest market, new prices and equipment lines mean that almost all versions of the compact hatchback ID3 and the mid-size SUVs ID4 and ID5 will be eligible for a government bonus ranging from 5,000 to 7,000 euros in 2024.

New Pricing 

The VW ID3 Pro with a 58 kilowatt-hour battery is now priced at 39,990 euros, down from the previous 42,990 euros. The ID4 model in the ID configuration starts at 43,990 euros, reduced from over 51,000 euros at its launch in France last year. As for the ID5, the lowest price with the ID configuration starts at 50,500 euros, while the Life Max configuration begins at 51,500 euros, which Volkswagen claims is 8,150 euros less than the roughly equivalent Pro Performance configuration from 2023, but with more options included.

Impact in Romania

In Romania, where the government bonus for electric vehicles is decreasing from 10,000 euros to 5,000 euros this year, Volkswagen’s electric models start at almost 33,000 euros for the ID.3, from which the ecoticket can be deducted.

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