Volkswagen sharply cuts car prices in Europe

by alex

Previously, the company promised not to enter into a price war with Tesla

Volkswagen, which previously said it would not engage in a price war with Tesla, is sharply cutting prices on its ID line of electric vehicles in Europe after Tesla cut prices on its best-selling Model 3 and Model Y models.

As restrictions on government incentives for electric vehicles tighten in the new year, Volkswagen is cutting prices on the ID line in France, Belgium, Germany and Norway, among other countries, as reported by Automotive News Europe. The company is also updating its offerings to address country-specific customer requirements and needs.

Last January, CEO Oliver Blume said the automaker would not enter into a price war in Europe with Tesla. «We have a clear pricing strategy and pay special attention to reliability. We believe in the power of our products and brands», — he stated in an interview with the Frankfurt Allgemeine Sonnetagszeitung. Last October, the company reported a slowdown in orders for electric vehicles, but said it would stick to its pricing model no matter what competitors do.

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In France, VW has updated its lineup so that almost all versions of the compact hatchback ID are now offered. 3 and crossovers ID. 4 and ID. 5 are entitled to receive a government bonus for an electric car in the amount of 5 to 7 thousand euros. ID. 5 is now available in France for just over 50 thousand euros in the new «ID» specification, which is more than 8 euros less than at the time of its launch.

In Norway, VW made a more significant price cut for the ID. 3 to remain competitive in a market where 82% of sales are electric vehicles, with 20% of those sales coming from Telsa in 2023. Belgium and Sweden will also see vehicle revisions and lower prices. In Belgium ID. 3 now costs 39,990 euros, and ID. 4 — €39,649, both are now eligible for a €5,000 discount.

Electrek also reported that VW has postponed plans to launch its ID electric car. 2all worth 25,000 euros from 2025 to May 2026.

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