Key Takeaways
- Volkswagen delays the US and Canadian introduction of the ID.7 electric sedan.
- Hybrids and PHEVs are expected to continue increasing market share.
- The ID. Buzz electric minivan is still on schedule to be launched later this year.
VW has announced that it is delaying the US and Canadian launch of the Volkswagen ID.7 sedan. The automaker did not initially share a reason behind the sudden decision, but if the blurb is any indication, it’s down to waning demand: “As market decisions continue to change, Volkswagen is delaying the introduction of the ID.7 sedan in the US and Canada.”
The Wolfsburg-based marque has not shared additional information regarding the decision, making this announcement all the more strange. It can’t be the Biden Administration’s 102% tariff on Chinese-built EVs. The ID.7 is manufactured in China, but the electric sedan is also built in Dresden, Germany. CarBuzz reached out to Volkswagen USA, which shared the following statement with us:
“The EV market in North America is stabilizing and diversifying. In the US, growth in BEV sales has leveled off from double-digit YoY growth in 2023 (46%) to single-digit YoY growth at the end of Q1 2024 (2%). Faster growth is occurring in hybrid powertrains (43% growth YoY at the end of Q1 2024) and with plug-in hybrid powertrains (63% growth).”
What Does This Mean?
Volkswagen, like most automakers, is rethinking its stance on electric vehicles. Demand for EVs has declined in several markets, including the United States, while demand for hybrids and PHEVs has skyrocketed as consumers look for practical, efficient, and affordable alternatives to battery-electric vehicles. We still expect the ID.7 to reach US shores eventually, but it seems Volkswagen will introduce hybrids and plug-in hybrids to the American market before that happens. Perhaps US customers will finally get the new Tiguan in PHEV guise…
Could Pricing Be The Issue?
The German-built ID.7 sedan won’t be eligible for the $7,500 tax credit. This would make it a hard sell alongside the ID.4. Volkswagen’s electric crossover has a starting price of $39,735, but the appealing incentive reduces this. For comparison, the UK-market base ID.7 carries an £8,910 premium over the entry-level ID.4, so we expect a similar pricing gap in the United States.
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Earlier this year, VW USA announced local specification for the ID.7 Sedan. Two trims will be available initially (Pro S and Pro S Plus), and both are powered by an 82 kWh battery and 282-horsepower electric drivetrain with 402 lb-ft of torque. A 335-hp model is expected to arrive at a later date.
ID. Buzz Still Scheduled To Arrive Later This Year
In the meantime, VW customers will still be able to purchase the aforementioned ID.4 and the ID. Buzz electric minivan, which will arrive later this year. Pricing and range estimates for the US-spec ID. Buzz is yet to be revealed, but three trims will be offered initially, with a launch edition offered for a limited time. Hopefully, this won’t be delayed, as American onlookers have shown considerable excitement for the retro bus, but for now, the only thing that’s guaranteed is that every automaker will be scrambling to get more EVs out the door to maintain profits and help support the development of cheaper EVs in the future.
Related
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