Text | Autodealer synthesis
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On July 6, FAW-Volkswagen announced that in order to celebrate the 70th anniversary of the founding of the FAW Group, it will launch a limited-time discount campaign for ID. family models, starting from CNY 155,900 from now on.
From the FAW-Volkswagen official website, it is learned that the current ID.4 CROZZ price range is 21.79-293,900 yuan, except for the LIFE PRO version, other models are not accepted for reservation, the model version is priced at 255,400 yuan, after the official discount is 201,400 yuan, the price is reduced by 54,000 yuan. ID.6 CROZZ guidance price of 25.89-336,900 yuan, in addition to the PURE version, PURE+ version, PRO version of the three models, the other two models are not accepted to book, of which the largest discount is the PURE+ version, the official guidance price is 282,900 yuan, the price is reduced by 87,000 yuan, and the latest preferential price is 195,900 yuan. As for the ID. Pure Limited Edition, the suggested retail price is 193,900 yuan, and after the price reduction, it is 155,900 yuan.
In addition to FAW-Volkswagen, SAIC Volkswagen also announced a price reduction, with its ID.3 model reducing the price by up to 37,000 yuan, and the current price is starting from 125,900 yuan. It should be noted that the campaign deadline is July 31 and is limited to 3,000 units.
What does Volkswagen want to cut prices? In the Chinese market, Volkswagen should be the most determined electric vehicle development, and it is also an international car company that has developed well in the field of joint venture electric vehicles, but it still cannot compete with Chinese electric vehicle manufacturers. According to data from the Passenger Association of China, the top three new energy vehicle sales from January to May 2023 are BYD, Tesla and GAC AION, in addition to SAIC-GM-Wuling, Geely Automobile, Li Automobile, and Changan Automobile, which also sold more than 100,000 new energy vehicles. In the TOP10, there is not a single joint venture car company.
At present, Volkswagen has three pure electric models in the Chinese market: ID.3, ID.4 and ID.6. After entering 2023, the intensive listing of domestic new vehicles and price wars have been one after another, the price of joint venture fuel vehicle brands has continued to decline, and independent new energy brands have participated in market competition by increasing the amount without increasing the price, resulting in the lack of competitive advantage of Volkswagen ID. family products. According to data from the Passenger Association, the cumulative sales of ID.3 from January to May 2023 were 11,846 units, ID.4 (including North and South Volkswagen) was 19,450 units, and ID.6 (including North and South Volkswagen) was 7,630 units. In the joint venture pure electric market, ID.4 sales are second only to smart Genie #1, which sold 19,711 units.
ID.4, ID.6 mainly focus on the pure electric SUV market in the range of 20-350,000 yuan, this price range has not really entered the state of white-hot competition, BYD, Aion, Leap, Nezha and other new energy brand models are mainly concentrated in the range of 100,000-200,000 yuan, and NIO, ideal also mainly layout more than 300,000 yuan market. Today, Volkswagen announced a lower price of the ID. family, perhaps also an increase in market pressure, and the price reduction will inevitably stimulate the terminal market, but at the same time it will also intensify the competition between products, including extreme krypton X, Buick E5, smart Genie #1, Qianjie M5, Xpeng G6 and other models, but in any case, price reduction may be the most useful means for Volkswagen to enhance product competitiveness.
As an industry leader in the fuel era, facing the threat of extreme oppression of electric vehicles, Volkswagen's transformation seems to be more resolute and better than other international car companies, but compared with domestic independent brands, Volkswagen's performance in the field of electrification still needs to be greatly improved. According to the latest data from the Passenger Association, FAW-Volkswagen sold 8,785 new energy vehicles in June this year, and SAIC Volkswagen sold 9,003 new energy vehicles, but still failed to enter the top ten.
Volkswagen China Chairman and CEO Brad said at the 2023 China Automotive Forum held on July 6 that Volkswagen's share of the Chinese fuel vehicle market has increased from 18% to 20% this year amid the continuous strength of new energy vehicles. A total of 17 new fuel models will be launched by 2030. At the same time, it is promoting the development of hybrid technology and gradually changing fuel models to plug-in hybrid models.
Berred said the new model will further strengthen Volkswagen's position in the fast-growing Chinese electric vehicle market. It is expected that the market share of new energy vehicles in China will exceed 30% this year and more than 50% by 2025. It is expected that by 2030, the annual sales volume of China's automobile market will increase to 28 million to 30 million units, of which new energy models will account for 74% and pure electric models will account for more than 55%. By then, no less than 30 pure electric models will be sold under the Volkswagen Group brands.
According to the plan, the Volkswagen Group plans to invest 180 billion euros (about 1,326.5 billion yuan) between 2023 and 2027 in battery production, software and digitalization in the Chinese market, and expansion of business in North America. In the next five years, the Volkswagen Group will spend 70% of its investment in electrification and digital software, of which 15 billion euros (about 110.6 billion yuan) will be spent on battery factories and raw materials. The Volkswagen Group said investment in internal combustion engine technology will peak in 2025 and then begin to decline, aiming for 50% of global pure electric vehicle sales by 2030.