Volkswagen is not a company to be left behind, even though its response is coming a little later than the rest. The German automaker has followed Tesla’s lead in cutting its EV prices.
Volkswagen likes to compare itself to Tesla; hence it was almost a given that it would respond to Tesla’s price cut challenge. However, the company took its time as it is only announcing its response. It is releasing a new version of its electric flagship, the ID.3, which will go on sale at almost €40,000 (US$43,000).
The advertised price is €3,000 less than the current ID.3. However, it means the ID.3 is competitive with the Tesla Model Y again, which has surged in popularity.
Tesla set the tone in the New Year by slashing prices in China and the US before expanding it to Europe. The company’s sales in Germany skyrocketed by more than 900% following the discount, helping it to become the best-selling EV brand for the month.
Volkswagen sold 352,000 EVs last year as it tries to catch up with Tesla, which delivered 1.3 million units in the same period. The latter expects to deliver 1.8 million units in 2023.