Volkswagen China has drastically reduced the price of its electric hatchback, the ID.3. For a limited period, buyers can avail of a "historically low" ¥125,900 ($17,434) starting price. This means the ID.3 now costs roughly half as much in China as it does in Europe.

Rising competition is presumably the main reason for the short-term price cuts. Over the past few years, Volkswagen China has gradually seen its EV market diminish thanks to BYD and Tesla - China's two most popular EV brands.

Today, Volkswagen is only accountable for roughly three percent of all EV sales in China. Meanwhile, Tesla and BYD hold a 9 percent and 24 percent share respectively. And although the ID.3 is now considerably cheaper than the Tesla Model 3, it's still marginally more expensive than the increasingly popular BYD Dolphin. The Dolphin starts at the equivalent of just over $16,000 in China. Similar in size to the ID.3, it has 210 miles of WLTP range and just launched in Europe. 

The China-spec ID.3 is manufactured by SAIC-Volkswagen in Shanghai. It comes equipped with a 57.3-kilowatt-hour battery pack and has a 279-mile CLTC range (or 216 miles under WLTP testing) The rear-wheel drive hatchback makes 170 horsepower and takes 7.6 seconds to launch from 0-60 miles per hour.

While things may be looking shaky in China, Volkswagen's EVs are going strong in Europe. With supply chain issues now largely resolved, ID.3 and ID.4 sales are up drastically. There is also plenty of demand for the ID. Buzz, with wait times of 12-18 months. The ID. Buzz will launch in the US next year, albeit in long wheelbase guise only.

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