Volkswagen (VW) has confirmed that it has deferred the launch of the highly-anticipated ID.7 electric sedan in the U.S. market indefinitely. It means that the VW ID.7 e-sedan, which is already available in Europe and China, will not be available in the U.S. for a long time. The battery-powered vehicle was expected to arrive in North America as a 2025 model.

In the month of March this year, several reports emerged regarding prospective trims for the flagship “near-luxury” ID.7 e-sedan. Test drives of the vehicle in Europe also earned it wide acclaim. However, the German automaker has now delayed its U.S. launch, citing market conditions. But the automaker didn’t specify which market conditions forced it to postpone the vehicle’s launch.

When the ID.7 was first introduced it was in the guise of the “Space Vizzion” concept. At that time, the manufacturer had said that it was the blend of the aerodynamic qualities of a Gran Turismo and the substantial interior space of an SUV. That concept was later turned into the ID.7 Tourer station wagon, and the ID.7 e-sedan is the sedan version of the vehicle.

It is worth-mentioning here that Americans are known for their love for SUVs. It may be for this reason that the German automaker might have decided to defer the launch of the e-sedan. The second reason might be weak sales of VW cars in the U.S. the German brand has never been as strong in the American market as it is in several other markets of the world.

However, EVs are offering a new ground for the VW’s EV business to growth. The North American electric car market grew 13 per cent in the first quarter (Q1) of this year, while VW suffered a decline of 3 per cent in sales. Thus, adding more EVs to its lineup in the U.S. can go a long way to help the automaker in boosting its sales.

Moreover, VW claims that the ID.7 has become an industry standard as it has bagged a number of prestigious international awards. It also claims that demand for the ID.7 Tourer has been higher than its own expectations, particularly in Germany.

VW’s decision to delay the launch of the ID.7 e-sedan in the U.S. market raises questions about the company’s strategy and dynamics of the evolving market. Thus, the eventual release of the ID.7 in the U.S. will be a key moment to watch.