Those who order a Volkswagen ID.4 in the Netherlands will spend at least 42,440 euros (subsidy included). In China, Volkswagen gives a generous discount and you only pay a small 19,000 euros. So less than half. What’s up with that?
The big price reduction of the ID.4 Crozz, as it is called in China, is offered by FAW-VW, one of the two major joint ventures of Volkswagen. A joint venture means that a brand (in this case Volkswagen) cooperates with a local producer (FAW) to offer its products. The discount has everything to do with a price war that has gripped the Chinese car world since the beginning of 2023. Tesla lowered its prices and then collapsed BYD is also in the price war. Other brands could not be left behind.
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The discount is considerable: the ID.4 Crozz is offered by FAW-VW for more than 6,000 euros less. The price has been reduced from 193,900 yuan (25,094 euros) to 145,900 yuan (18,882 euros).
For this price, Chinese customers order a rear-wheel drive ID.4 Crozz with 204 hp, 310 Nm of torque and a range of 425 kilometers. This has been measured with the Chinese CLTC method, a realistic range will probably be around 300 kilometers. In the Netherlands, the entry-level model of the ID.4 costs 42,440 euros (Pure), after deduction of a 2,950 euro subsidy. For that you get an ID.4 with 170 hp and a battery of 52 kWh that, according to WLTP standards, reaches 361 kilometers on one charge.
Also ID.3 on sale
The ID.4 is not the first model that Volkswagen offers at a discount in China. A few months ago, SAIC-Volkswagen – Volkswagen’s other Chinese joint venture – put the Volkswagen ID.3 on sale for just under 16,000 euros:
The discount took care of Car News China for the desired effect: sales of the ID.3 quadrupled in July compared to a month earlier.
Why are cars so much cheaper in China?
All cars are cheaper in China than in Europe. This is not only due to the lower incomes of the Chinese. Due to the lower wages, production costs are lower, and raw materials for battery packs, among other things, are simply available in China. And not unimportantly: Volkswagen’s joint ventures can also count on state support from the Chinese government.