Volkswagen still yet to announce pricing for it ID.4 And ID.5 electric SUVs, even though the December 2024 launch is getting closer, but it has raised expectations.
“You will be pleasantly surprised by this [pricing]” said Paul Pottinger, general manager of corporate communications for Volkswagen Group Australia AutoExpert.
The company was expected to announce prices this week, but the local boss has said this is still in the final stages.
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“That hasn’t been done yet. I think we need a few more days [a short] time to finalize this with the head office,” said VGA director Karsten Seifert.
“But I’m pretty sure we’ll be just as reasonably priced, with a very welcome price point for the Australian market, including for the ID.4.
“We have to find the right price point, which is not always the easiest topic for our group. We are getting better at this.”
Both executives pointed to the ID. Buzz, for which prices were announced earlier this year and which brings most of the electric people mover’s range below the Luxury Car Tax (LCT) threshold.
It is unclear how close Volkswagen will be able to get to the rival Tesla Model Y, which is not only the best-seller in the segment, but also Australia’s best-selling electric car (EV).
The similarly sized Chinese-built SUV costs $55,900, excluding on-road costs, for the base rear-wheel drive model, while the Long Range AWD costs $69,900 before on-road use and the flagship Performance costs $82,900, excluding on-road use. the road.
Volkswagen says a few hundred units of the new electric SUVs have already been built for Australia and are ready to ship.
The ID.4 will initially launch here in December only as a single-motor, rear-wheel drive Pro model, while its sleeker SUV sibling, the ID.5, will initially launch only as a dual-motor, all-wheel drive GTX .
A Pro version of the ID.5 and a GTX version of the ID.4 will follow in 2025.
Tesla disrupted the segment earlier this year with successive price cuts that made the Model Y even more affordable, and then several brands also cut prices on their electric vehicles.
Asked whether Volkswagen would be forced to cut ID.4 and ID.5 prices if Tesla did so again – or if more affordable Chinese models came to market – Mr Seifert left the door open.
“We will act rightly and correctly, and again, I don’t think we can say that we will [will never cut prices] – I think that would be wrong, and that is not correct,” he said.
“I think we’re acting in the right way, very reasonably, given today’s moment of truth.”
However, he said that the pricing for the EVs “will have a stable aspect” and that the company will be careful not to make decisions that would harm the retained values in the medium and long term.
Mr Seifert acknowledged the delay in getting the ID.4 and ID.5 to Australia, saying: “It sometimes takes too long for us to come up with new technologies.”
The ID.4 was first released in Europe at the end of 2020, meaning it will take around four years before it finally arrives here.
But while it looks much the same as it did back then, Volkswagen has recently given it a series of mechanical updates. These include a new, more powerful 210kW/545Nm electric motor in rear-wheel drive models, which also saw increased range, as well as new charging and temperature management.
Inside, the electric SUVs also received a larger 12.9-inch infotainment touchscreen with illuminated touch sliders underneath.
The ID.4 and ID.5 are far from the only vehicles in their segments experiencing delays in their arrival in Australia.
The Ford Mustang Mach-E went on sale in North America in late 2020 but didn’t arrive here until late 2023, while the Toyota bZ4X went on sale there in 2022 and took until this year to arrive locally.
The Nissan Ariya still won’t arrive in Australia until the second half of 2025, about three years after it went on sale overseas.
While Volkswagen said the EV market is maturing, with more vehicles arriving and Tesla’s dominance being eroded, Mr. Seifert noted the market is “not getting smoother.” [but] becoming more difficult year after year” and that “the Chinese are coming in.”
The ID.4 and ID.5 will not only have to contend with the aforementioned rivals and others like the Hyundai Ioniq 5 and Kia EV6, but also a plethora of Chinese newcomers.
That includes the upcoming BYD Sealion 7, Leapmotor C10, Xpeng G6, Zeekr 7X and likely a mid-size electric SUV from MG.
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