Volkswagen's joint venture in China, FAW-VW, has reduced the prices of its ID.4 electric SUV, with the starting price now at 145,900 yuan ($20,060). This move comes as Volkswagen faces increasing competition in the Chinese EV market and aims to stimulate demand. However, offering these promotions may impact the company's profitability compared to other leading EV manufacturers like BYD and Tesla.
Volkswagen has become the first non-US automaker to qualify for the full $7,500 US federal EV tax credit. All model year 2023 ID.4 models placed in service this year are eligible because they’re manufactured in Chattanooga, Tennessee. The ID.4 comes in two battery sizes and two powertrains, and the $7,500 federal tax credit makes it even more attainable.
Volkswagen confirms that the US-built ID.4 crossover will be eligible for the $7,500 federal tax credit, which is a big deal for the brand as it has been betting big on electric cars lately. The base model ID.4 is one of the cheapest EVs on the market, but with just over 200 miles of range and a "meh" driving experience, it may not be the best option. However, this news expands the choice of affordable EVs for consumers in the US.
Volkswagen's ID.4 electric SUV is now eligible for the full $7,500 federal EV tax credit, making it one of the more affordable EVs on the market. The ID.4 is the only international automaker's EV that qualifies for the full credit, and it is assembled in Chattanooga, Tennessee, which is a prerequisite for eligibility. The ID.4 comes in two battery sizes and two powertrains, and its battery is now supplied by SK Innovation, a South Korean company with a factory near VW's plant in Chattanooga.
