The Volkswagen ID.3 hatchback, Volkswagen’s first all-electric production car based on the MEB platform, has received more than 10,000 orders in China after its price was slashed around a month back for a limited period.

In China, the German automobile manufacturer is producing and selling the battery-powered car in partnership with the SAIC – a Chinese state-owned carmaker headquartered in Shanghai. In late June, the SAIC-VW joint venture (JV) reduced the price of the EV in order to boost sales by attracting more potential buyers.

In June, Volkswagen’s Chinese division offered the Volkswagen ID.3 hatchback with a record low starting price tag of ¥125,900 (approx. $17,500). The figure stands for roughly half of the EV’s MSRP in Europe. At the time, the automaker said lower pricing would help it better compete with local car brands like BYD. Actually, the German automaker is struggling to regain the market share that it lost to rivals in the face of soaring competition in the world’s largest car market.

Thus, the German automaker’s decision of price cuts has paid dividends, especially when we consider that the company sold only 2,556 units of the ID.3 electric hatchback in May, prior to the price cuts. However, in the face of its main rival – BYD – Volkswagen is still lagging far behind in terms of its Chinese sales.

In the month of May, BYD sold 29,081 units of the battery electric Dolphin hatchback, which comes with a starting price tag of ¥116,800 (approx. US$16,000). The BYD Yuan Plus, which is being offered as the Atto 3 in other markets with a starting price tag of ¥134,000 (US$18,500), attracted 26,072 buyers.

During the same month, the German automaker recorded a market share of 2.9 per cent in the Chinese market after selling 11,302 BEVs, down 0.3 per cent from the corresponding month of 2022.
For reference, BYD accounted for 28 per cent of the BEV market in May, while American electric car pioneer Tesla Inc. grabbed 11 per cent.

The VW ID.3 electric hatchback that is being sold in China is built by the SAIC-VW JV in Shanghai. It comes equipped with a 57.3-kWh battery and a single rear-mounted e-motor that churns out 125 kilowatts (170 hp) and 228 pound-feet (310 Nm) of torque.

The VW ID.3 isn’t available in the United States, where the VW ID.4 electric crossover that is built in Chattanooga, Tennessee, represents the brand’s entry-level EV.