Volkswagen reports that during the first quarter of 2023, its vehicle sales in the United States increased by over 4 percent year-over-year to 67,853. However, that's still far less than in the previous years (over 90,000 in Q1 2021).

Meanwhile, the company has significantly increased its all-electric car sales, reaching a new all-time record.

In Q1, 9,758 Volkswagen ID.4 were sold in the US, which is 254 percent more than a year ago. It's also a slight increase over Q4 (9,439). Interestingly, that's significantly more than in the case of the Ford Mustang Mach-E (5,407).

Thanks to the ID.4 production ramp-up at the Chattanooga, Tennessee plant, all-electric car share out of Volkswagen's total volume increased to 14.4 percent (a new high).

Volkswagen ID.4 sales in the US in Q1 2023

For reference, in 2022, 20,511 Volkswagen ID.4 were sold in the US, which is 22.5 percent more than in 2021 (16,742) and 6.8 percent of the brand's total volume.

Cumulatively, more than 47,000 ID.4 were delivered to customers. Let's note that Volkswagen had more than 40,000 reservations at the end of 2021. It seems that this year alone, the company might add 40,000+ units.

An important factor for the Volkswagen ID.4 is that it's locally produced (in Chattanooga, Tennessee) and eligible for the full $7,500 federal tax credit. On top of that, batteries are also locally produced in the US, by SK Innovation's SK On in Georgia.

The entry-level Volkswagen ID.4 starts at an MSRP of $38,995 (+ $1,295 DST), which is $40,290 in total. However, after deducting the $7,500 incentive, it's effectively $32,790 and that's something that attracts customers.

In the future, the ID.4 will be joined in the US by the Volkswagen ID. Buzz and Volkswagen ID.7.

In Europe, the Volkswagen ID.4 is expected to sell better and better also, as it's produced at two plants: in Zwicaku (Germany), and in Emden (Germany). With two more plants in China - in Anting and Foshan (online since 2020) - the model is produced at five plants on three continents.

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