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VW’s Debut Electric Car Series Sees Sluggish Sale In The First Two Months

VW’s Debut Electric Car Series Sees Sluggish Sale In The First Two Months
There has been a worryingly slow start in China for Volkswagen AG's ID series which is at the core of the electric vehicle ambitions of eh German company.
Launched almost two months ago, the sales of two ID.4 electric SUV models for the month of May was only at two 1,213 combined and according to auto consultancy LMC, it was 200 units less for the month of April.  
According to reports quoting sources within the company, tee sale numbers were much lower than what the company had initially hoped and the sales that have been achieved by some other automakers for their early sales of flagship EV offerings in the largest auto market of the world.
According to comments by Yang Siyao, a company marketing executive, in Chinese media in March, sales of 50,000-60,000 vehicles this year has been set as the target for the sale of the slightly bigger ID.4 X model which is manufactured by Volkswagen's joint venture with state-owned SAIC Motor.
According to reports, similar targets were set for a separate joint venture of the second largest auto maker of the world with it local Chinese partner FAW which makes the ID.4 CROZZ.
But now those targets seem to have been very unrealistic.
Further, reports also noted that the EV factories of both the joint ventures are running at 10 per cent below production capacity.
Competition from Chinese EV makers, issues in Volkswagen’s new EV sales network, a late launch compared to Tesla Inc, fierce competition and a shortage of smart tech features in  EVs were cited as the reasons for the worse than expected debut of the models in the Chinese market, said reports.
"Sales so far are behind our earlier expectations. We've had to dial down production plans for the ID.4 again and again," one of the reports quoted one of the unnamed sources as saying.  "This is not healthy, but at the moment customers are not coming to buy them," the source reportedly added.
Staff members of the SAIC-Volkswagen venture have been advised to buy ID.4s which is another sign of the sales stress, said reports quoting information from an internal company memo.
In contrast in the first two months after its launch, 6,612 units of its Model Y in China were old by Tesla. The debut performance of the ID.4 in Europe too sharply contrasts the performance in China. According to JATO Dynamics, in the first two months post-launch, 12,101 units of the electric car were sold in Europe by Volkswagen.
With the company building up its production and a new sales network, the sales in China were in line with the expectations of the company, Volkswagen said in a statement to the media. It added that Tesla's Model Y is not viewe3d as a direct competitor for ID.4 as it occupies a different vehicle type segment. The company also said in the statement that there was enough confidence in the company of a sales growth of its two ID.4 models and referred to the plans of the company to launch three more ID models this year in China.

Christopher J. Mitchell

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