Volkswagen ID.7 struggles to find customers in China - only 300 orders

The recently launched Volkswagen ID.7 Vizzion in China, priced at RMB 237,700 (currently around $33,200), has garnered only 300 orders within the first 72 hours. Despite the attention generated at the Shanghai Auto Show, Chinese consumers seem hesitant to embrace the electric sedan at almost half the price it commands in Europe.

The CarFans report, reveals a conversion rate of 5%, indicating that only one in twenty visitors to dealerships decided to make the purchase. Interestingly, 80-90% of these customers are men, averaging around 40 years old. The ID.7, often perceived as a secondary family vehicle, attracts 30% of buyers familiar with alternatives like the Passat.

The report sheds light on crucial aspects affecting ID.7's market reception. The price point has deterred potential buyers, and although customers appreciate the spacious interior, they express dissatisfaction with additional charges for features such as heated seats. On top of that, there's a mismatch between market demand and the configurations promoted by Volkswagen, leaving sales staff with less desirable models.

Volkswagen's strategic move to have two joint ventures in China, VW-FAW and VW-SAIC, manufacturing the ID. series, adds complexity. While this allows competition between the two ventures, the ID.7 Vizzion from FAW JV faces fierce competition in China's RMB 200,000 sedan segment. Rivals like Zeekr 007, BYD Seal, Tesla Model 3, and others offer superior connectivity and digital experiences, overshadowing the ID.7.

Despite being the largest car market in the world and Volkswagen's most significant market share contributor (40% of global sales), China presents a challenge for the German automaker in the EV segment. The ID.3 hatchback faced a sales disaster, forcing significant price cuts to boost sales. The current feedback suggests that ID.7 might soon follow suit with discounts to lure in buyers.

Volkswagen's struggle in China's EV market extends beyond internal competition, with BYD and Tesla taking the lead. Having doubled down on EVs in China through a 5% stake in Xpeng Motors, Volkswagen acknowledges the potential for further market share losses until new Xpeng-powered models arrive in 2026, as warned by CFO Arno Antilized.

Source (Chinese)