ID. Available for cross order. (Volkswagen AG)
key takeaways:
- Volkswagen launches the ID. The Cross electric subcompact SUV, starting from around 28,000 euros in Europe, is expanding its lineup of low-cost EVs.
- Strong EV demand, government subsidies and higher fuel prices helped plug-in vehicle sales grow 29% and registrations by more than a third.
- ID. The Cross joins the Spain-made budget EVs as Volkswagen responds to growing competition from Chinese automakers and weak sales in China.
Volkswagen AG is adding a subcompact SUV to its line of budget-friendly electric cars as incentives and higher fuel prices prompt European buyers to switch from gas-powered best-sellers like the T-Cross.
The ID costs around 28,000 euros ($32,000). The Cross will lead VW’s line of affordable electric city models that are increasingly competing with BYD company’s Dolphin Surf.
The car is available for order, although sales of a version with a smaller battery will begin at a later date, VW said on July 15. ID. The Cross joins VW’s new Polo, Cupra Raval and Skoda Epic that offer electric driving at a lower price. All models will be built in Spain, where production costs are much lower than in VW’s German home base.
Sales of battery-cars and plug-in hybrids in Europe have surged this year, boosted by subsidies in Germany and France, the region’s biggest markets. High fuel prices due to the war in the Middle East have made EVs even more attractive. Through the first five months of the year, combined sales of plugged-in cars have increased by 29%, accounting for more than a third of total registrations.
In a bid to promote its “people’s cars” offering, VW CEO Oliver Blume said last week that the company was surprised by the speed with which Chinese brands are grabbing market share. Carmakers such as BYD and Chery Automobile Co. took 10% of Europe’s total market share for the first time in May, with Chery’s Zeku 7 SUV ranking as the UK’s third most popular model during the first half.
For VW, maintaining a hold on Europe, where it is the biggest carmaker, is becoming even more important as the group’s sales in China decline, and efforts to boost demand in the US struggle.
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For ID. Cross, drivers will be able to recharge almost completely in 23 minutes for a maximum range of approximately 430 kilometers (267 miles). Despite its budget-conscious tag, the car features optional massaging seats and a dimmable panoramic sun roof.
Last week, the maker of Audi and Porsche cars discussed more restructuring plans that could double global job cuts to 100,000 and potentially close car manufacturing sites in Germany. These proposals would be one of the most drastic measures in VW’s post-war history.
Like German counterparts Mercedes-Benz Group AG and BMW AG, VW’s market share in China has declined as buyers in the three’s most important market have turned to domestic brands.
