German automotive giant Volkswagen is facing a tough period in China’s electric vehicle market. The company’s fully electric premium sedan, ID.7, recorded a shockingly low sales figure of just 9 units in January 2025. This marks a 99.6% decline compared to the same period last year. In contrast, Volkswagen had managed to sell 2,269 units of the ID.7 in January 2024. This dramatic drop raises serious concerns about the brand’s EV strategy in China, the world's largest automotive market.
Volkswagen’s best-selling electric model, the ID.3 hatchback, saw 2,623 units sold, but still suffered a 65.5% drop compared to the previous year. Following that, the ID.4 X dropped 70% with 1,020 units sold, while the ID.4 Crozz saw a 59.3% decline with 889 units sold. These figures indicate Volkswagen’s weakening position in China’s fiercely competitive EV market.
Production Partnerships and ID.7’s Disappointing Sales
Volkswagen manufactures its ID. series in China through three major joint ventures: SAIC, FAW, and JAC. For instance, the ID.4 X is produced in partnership with SAIC, while the ID.4 Crozz is developed with FAW. However, these partnerships seem to have lost their effectiveness in boosting sales.
One of the biggest disappointments was the FAW-produced ID.7 Vizzion, which sold only 9 units in January, essentially hitting rock bottom. The model was initially introduced for pre-orders in November 2023 and officially launched in December 2023 with a starting price of 227,777 yuan ($31,400 USD).
With a range of 642 km, an 84.8 kWh battery, and a 150 kW single-motor rear-wheel drive (RWD) configuration, the ID.7 had its price slashed to 197,700 yuan ($27,200 USD) in an effort to attract buyers—but to no avail.
Meanwhile, the all-wheel-drive (AWD) version, offering 230 kW of power and 472 Nm of torque, was priced at 232,700 yuan ($32,000 USD) but also failed to generate significant demand.
Volkswagen Struggles Amid Fierce Competition
The ID.7’s poor sales reflect the intense competition in China’s EV market. Brands like Tesla, BYD, and NIO have solidified their dominance, making it increasingly difficult for traditional automakers like Volkswagen to compete.
Despite aggressive price cuts, Volkswagen struggles to match its rivals’ advanced battery technology, extended driving ranges, and highly competitive pricing.
To regain traction, Volkswagen must invest in innovative technologies and adopt more aggressive marketing strategies. Without significant changes, the company’s EV market share in China could continue to shrink.