Volkswagen ID.4 may be cheaper than expected

The first Volkswagen electric vehicle to go on sale in Australia – the Volkswagen ID.4 – could be a fair bit cheaper than widely expected when it arrives Down Under, hopefully by late 2023.

According to the German brand’s local passenger vehicle boss, the all-new EV will be positioned alongside another mid-size SUV in the Volkswagen line-up, although Australian pricing and specifications are yet to be confirmed for the ID.4.

Speaking with carsales at the local unveiling of the new Volkswagen ID.4, Volkswagen Group Australia’s director of passenger vehicles Michal Szaniecki said the brand’s first EV would be priced in line with the most popular Tiguan variant, the 162TSI R-Line, so prospective buyers could easily cross-shop between the pair.

Given the Volkswagen Tiguan 162TSI R-Line is priced from $57,690 plus on-road costs, that means the incoming ID.4 could start under $60,000 in Australia.

At that price, Volkswagen’s first EV will be more expensive than Australia’s cheapest EVs including the MG ZS EV and BYD Atto 3 small Chinese-made electric SUVs (both priced from around $45,000).

But it would be cheaper than larger electric SUVs like the Hyundai IONIQ 5 (from $69,900) and Kia EV6 (from $72,590), as well as the premium Tesla Model Y (from $72,300).

The Volkswagen ID.4 could also undercut the upcoming Renault Megane E-Tech Electric and Toyota Australia has already said its first EV – the bZ4X mid-size electric SUV also due here in 2023 – will be “expensive”, potentially setting up a fierce showroom battle between the mainstream German and Japanese electric SUVs.

While Tesla was the first car-maker to achieve EV price parity with its combustion-powered competitors via a circa-$60K starting price for its Model 3 sedan, Volkswagen’s Australian product and PR communications manager Daniel DeGasperi made it clear the mass-market German brand would take a mainstream approach to EVs, claiming no other auto brand offers an EV at price comparable with that of its own existing mid-size SUV.

“[It’s] a very different thing to what Tesla are doing,” said DeGasperi.

“We've got a car out there with 520km of range, but we’re also targeting that Tiguan customer, for example. So, to have the dealer network that we do, to have the demand for the Tiguan that we do, and for that to land as a mid-size SUV with that range, in that ballpark, spells a lot of ambition.

“I think if you look at any of the current EV rivals, they don’t quite go for that matrix. That is range, that is space and that is positioning.

“It's a very unique matrix.”

Exactly what that matrix will look like is still months away from confirmation, although Szaniecki hinted that while the ID.4 would be launched with the larger of two battery options – a 150kW single rear electric motor paired to a 77kWh lithium-ion battery – a cheaper variant will almost certainly follow.

“That’s our key option [77kWh], but I will not confirm that [it will be the only battery option from launch]. But it would be our key spec for Australia, 100 per cent,” said Szaniecki.

“We will focus on the best spec for Australia, to get it first. So, it will be very simple – maybe one, maybe two [variants from launch].

“But of course, then we will make sure that we are covering… we want to be the brand which is a mainstream brand, a democratising electric-mobility [brand] in Australia as well, which might mean that we will offer the ranges which are a bit more affordable.

“Of course, automatically the range [of a cheaper ID.4] would not be 520km, but might be very, very desirable here in Australia especially for commuters for having a 20km cap per day need.

“Absolutely all is considered. We are not having a niche approach to the market. We are having a mainstream approach to the market and whatever the demands will be, of course, we will respond to it.”

Volkswagen’s local passenger car chief stopped short of confirming what other offerings might join the line-up, but confirmed the ID.4 will launch with a ‘top-down’ strategy.

“Well for sure we will start with the most desired spec here for Australia, and that might be this guy here [the 77kWh ID.4 Pro Performance,” said Szaniecki.

“For the naming conventions or anything like that we will stay to the global conventions, but the selection of the specs will be very adjusted to what is in Australian characteristics. It's always top-spec here is selling best.”

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