Volkswagen ID.7 received 300 orders in 72 hours following the launch in China

Volkswagen ID.7 Vizzion was launched on December 15 in China, starting at 237,700 yuan (30,600 EUR). Despite the price being almost half what the electric sedan costs in Europe, it received only 300 orders, according to the CarFans report.

The ID.7 was unveiled in April at the Shanghai Auto Show, resulting in good customer awareness and knowledge of ID.7 equipment and configurations. The prior knowledge led to minimal dealership visits following the China price reveal and pre-sales start in November.

Chinese consumer behavior research agency 车fans (CarFans in English) specializes in publishing 72-hour studies revealing the sales performance of particular models within three days after launch. The ID.7 report revealed that each dealership received 0-1 orders for ID.7 and 300 orders in total in China.

The conversion rate was 5%, meaning one in every 20 visitors buys the car. 80-90% of customers are men, and average age is 40. The ID.7 is often considered a second vehicle in the family, and 30% of customers come from people familiar with alternatives such as Passat.

According to the report, the high price of ID.7 has deterred lots of customer interest. The dealership visitors also expressed satisfaction with the spacious interior but dissatisfaction with the need to pay extra for features such as heated seats.

Customer feedback also suggests that VW is not aligning production with market demand and is promoting ID.7 configurations that customers do not want. As a result, customers wait for the configuration they desire while sales staff are left with the models that are difficult to sell.

Volkswagen has two joint ventures (JV) with state-owned automakers manufacturing their ID. series in China: VW-FAW and VW-SAIC. Foreign automakers historically had to form a 50:50 joint venture with a local company to enter the Chinese car market. The rules changed when Tesla entered China as the first automaker on its own, without a joint venture.

The cars from each factory have different names, and Volkswagen lets the two JVs compete against each other to reach higher sales. So, for example, ID.4 and ID.6 made by the SAIC JV factory are called ID.4 X and ID.6 X, and the models made in the FAW JV factory are ID.4 CROZZ and ID.6 CROZZ.

FAW JV manufactures ID.7 Vizzion.

Editor’s comment

ID.7 faces tough competition in China, as the 200,000 yuan sedan segment is overcrowded with competition. Zeekr 007, BYD Seal, BYD Han, Neta S, Rising F7, Leapmotor C01, Tesla Model 3, and the upcoming Luxeed S7 and Xiaomi SU7 all eat ID.7 lunch, offering better connectivity and digital experience.

Chinese love Volkswagen as the synonym of German quality, and Volkswagen loves China as it is their biggest market, selling 2.2 million cars in 2022. But when it comes to EVs, ID.7 doesn’t really have much to offer in China. Great hardware and built-in quality are not enough anymore.

ID.3 hatchback was a sales disaster in China, and VW had to cut the price radically several times. The entry-level EV now sells for 124,900 yuan (15,950 EUR), and it helped boost sales a bit.

Previously, when Chinese consumers wanted to buy something expensive to show their status, they went for a German car. When their budget was low, they bought a domestic car. Now, times have changed, and if you talk to any ID.3 customer in China, you will learn that the main selling point is the low price. Expect an ID.7 discount soon.