2023 Volkswagen ID.4 Hit With $1,500 Price Hike Across The Board

The increase also applies to vehicles reserved prior to January 4, when the new prices go into effect.

2023 Volkswagen ID.4 exterior front three-quarter view driving

Dan Mihalascu

By: Dan Mihalascu

Dec 23, 2022 at 8:06am ET

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Volkswagen is raising prices on the ID.4 in the United States once again, this time by $1,500 across the range.

The automaker has sent an email to ID.4 reservation holders informing them of several changes that will be made to all ID.4s assembled after January 4, 2023. The most important updates involve price increases, battery supplier changes and an end to the reservation system as Volkswagen anticipates ample availability at dealerships.

For starters, all 2023 Volkswagen ID.4 SUVs assembled on January 4 or later will get a $1,500 price hike, meaning that the base ID.4 Standard now starts at $38,995 (excluding a $1,295 destination charge). Vehicles assembled prior to that date will retain the old MSRP. While Volkswagen won't update its website until January 4, it sent reservation holders a list with the new MSRPs for all trim levels.

According to Electrek, the new prices will also apply to current reservation holders, which is something they won't be happy to hear. Volkswagen argues that the reservation was never meant to "lock in" a price, and that the actual price of each vehicle will be set by dealers. While it does have a point given the market's volatility in the recent couple of years, ultimately that's not the customer's fault.

Gallery: US-made 2023 Volkswagen ID.4

2023 Volkswagen ID.4 exterior front three-quarter view city driving

2023 Volkswagen ID.4 exterior front three-quarter view driving

This is the third price hike this year after Volkswagen applied another $1,500 raise for 82-kWh models in August and another one in January—$765 across the board. Despite the most recent price increase, the 2023 VW ID.4 may become cheaper for some customers who are eligible for the full $7,500 tax credit under the new Inflation Reduction Act (IRA). While the 2022 ID.4 was no longer eligible for federal subsidies after IRA was passed into law, the 2023 model will be because it's made in the United States.

Price hike aside, VW has good news for ID.4 reservation holders as availability is increasing significantly after production started at its Chattanooga, Tennessee plant. As a result, the automaker plans to stop taking reservations, with January 4 to be the last day to place a preorder. After that, Volkswagen expects ID.4 SUVs to be readily available at US dealers. Obviously, all reservations placed before that date will be honored.

In the email, the carmaker also informs customers that battery components—specifically cells and modules—will now be sourced from two different suppliers for 2023 Volkswagen ID.4 RWD models equipped with "Pro" 82-kWh batteries.

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Some of these vehicles will feature battery components from LG Energy Solution, while others will be assembled with components from SK On. Previously, LG Energy Solution was the sole supplier for the large battery. As for the smaller 62-kWh pack offered on Standard and S trims, it will be supplied by SK On.

Besides allowing Volkswagen to produce more ID.4s, the addition of SK On as a battery supplier also brings higher charging speeds, with a 170 kW peak instead of 135 kW. While the LG battery charges from 10 to 80 percent in 36 minutes, the SK On pack needs 30 minutes for the same charge when hooked to a charger fast enough to supply those peak rates.