The 2024 Volkswagen ID. Buzz could come with a sub-$90,000 pricing surprise as the German brand eyes serious sales volume for its retro-infused, battery-powered reincarnation of the legendary VW Kombi.
Volkswagen Australia has also confirmed the sporty GTX performance flagship will join the ID. Buzz line-up Down Under in 2025, months after the late-2024 arrival of regular variants, customer registrations for which opened last October.
In confirming Australia would get both the shorter five-seat version of the ID. Buzz as well as the long-wheelbase seven-seat model, Volkswagen Australia’s head of marketing and product for commercial vehicles, Nathan Johnson, also revealed the company is lobbying its head office to take advantage of the fringe benefits tax (FBT) incentives that have been instrumental in growing sales of EVs in Australia.
“We’re working on it [pricing[ at the moment with the factory,” said Johnson, adding that slotting in under the $89,332 luxury car tax threshold, which is also the cut-off for the FBT exemption, was “a clear target for us”.
“We’ve had a visit from one of our board members this week specifically to come and talk about topics like ID. Buzz’s future in Australia… it’s been very productive.”
Johnson said that by leveraging the FBT incentives – which allow people to salary-sacrifice an EV using pre-tax income and not pay FBT – there were clear benefits for attracting buyers who may otherwise have purchased an internal combustion engine alternative.
However, Volkswagen is not ready to confirm pricing for the ID. Buzz just yet, instead suggesting there was more to play out with the intense negotiations.
“Early Q4 we’ll release some pricing,” said Johnson.
“We’re working on it at the moment with the factory; really positive steps to making sure we have the right car in the right price bands and the right car at the right price for this market.”
About 89 per cent of all EV sales in Australia in 2023 were below the LCT threshold, underlining the importance of sharpening the pencil to take advantage of the generous tax incentives that can save buyers thousands each year.
Early pricing estimates had the ID. Buzz starting at around $120,000, with Volkswagen later hinting it would kick off at about $100,000. In the UK it sells from £59,035, which currently converts to about $112,000.
If Volkswagen Australia could slide the ID. Buzz in below $90K it would be something of a pricing coup that could net the modern interpretation of the Kombi some decent sales volume.
Describing it as a “segment-busting car” – and one that could draw people out of SUVs and people-movers – Johnson says the company was planning for the ID. Buzz to make a big impact on the market in terms of sales.
“It’s a serious move into the BEV space for us,” he said. “We see definite potential in this market for that car.”
At the other end of the ID. Buzz scale is confirmation than the sporty GTX will make its way Down Under.
“The truly exciting one which we can confirm is coming to Australia as well is the ID. Buzz GTX,” said Johnson.
The GTI-inspired ID. Buzz GTX uses two electric motors – the front making 80kW/134Nm and the rear 210kW/560Nm – to produce a combined 250kW and 0-100km/h acceleration in a claimed 6.5 seconds.
The GTX also gets various design tweaks including black exterior highlights, red touches inside and a selection of GTX badges.
“This car is going to be in the long-wheelbase variant, it will be an all-wheel drive, it will do 0-100km/h in around six seconds,” he said.
“For an MPV that is quite quick… it is shit-hot for an MPV vehicle.”
Volkswagen is also hoping to shake up the commercial van market with the work-focussed ID. Cargo, which drops its back seats in favour of load space.
“There’s huge opportunity for that car in this market as well,” said Johnson of the ID. Cargo.
“It’s not just a quick adaptation of the ID. Buzz… it takes on all of our commercial traits that we have across all of our commercial vehicles.”
Johnson believes Australia’s commercial vehicle market is primed for a seismic shift.
“The next couple of years are going to see a huge shift in that area. There are not many pure-electric vans on the market at the moment and if there are… they’re an adaptation [of an ICE vehicle].
“If we can bring the right product to the market at the right time there’s a huge opportunity for us to be quite competitive.”
Johnson also pointed to the 102 Volkswagen dealers that can provide aftersales back-up as another strength for the brand in Australia.