At This Price the Volkswagen ID.7 EV Will Fail Just Like the Arteon It’s Replacing
The Volkswagen ID.7 is on its way to the U.S. in 2024 for the 2025 model year. However, Volkswagen’s newest EV is already on sale in Europe, and its price is rather eye-opening. Excluding the European 21% tax, the ID.7 starts at approximately €48,000. That would make the Volkswagen ID.7 $52,000 here in the U.S. That’s a respectable price tag, but at that cost, the ID.7 will fail just as spectacularly as the outgoing Volkswagen Arteon.
Similarities between the VW ID.7 EV and Arteon
Even from a design standpoint, it’s clear that the Volkswagen ID.7 draws inspiration from the VW Arteon. The Arteon, for what it’s worth, is one of the most beautifully designed cars on the road today.
Despite its inherent beauty and undeniably enjoyable driving experience, the Arteon sold no more than 5,537 models in the U.S. market. Comparatively, the nearly identical (and more expensive) Audi A5 sold no fewer than 17,128 models alongside the Arteon.
So why couldn’t the Arteon match that success? Price.
Volkswagen means, quite literally, ‘people’s car’. That the Arteon carries a starting price above the Golf GTI and Jetta GLI puts it in an awkward middle ground between standard and luxury. Moreover, marketing for the Arteon was thin: you’d have to drive one to have any idea how good it is. And when more and more of the U.S. market is dominated by SUVs, an overpriced, under-marketed sedan was always going to be a tough sell.
Sales Comparison: VW Arteon vs. Audi A5
|Year||VW Arteon Sales|
(Starting Price $39,000-$43,000)
|Audi A5 Sales|
(Starting price $45,195-$47,795)
The VW ID.7 EV will likely suffer the same fate
Looking at European pricing for the VW ID.7, it’s clear Volkswagen learned nothing from the Arteon failure. The European price from VW, directly converted to USD, puts the ID.7 at $52,000. That’s less than the Audi e-tron and Mercedes EQE, sure. But it’s $10,000 more than the Hyundai Ioniq 6 and Kia EV6 it’ll be up against. Granted, we don’t know the feature depth of either model. But the Ioniq 6 comes standard with a dual digital instrument cluster, 2nd-row HVAC vents, and a proximity key.
Moreover, the upcoming ID.7 will likely be roughly $20,000 more than the upcoming Volvo EX30 EV. Rather than democratizing EV ownership, the ID.7 is just another expensive electric sedan. And right now, expensive electric sedans just aren’t selling.
When does the Volkswagen ID.7 replace the Arteon?
Somehow, the Volkswagen Arteon carries on for one more year before the ID.7 comes to the U.S. in 2025. However, Volkswagen confirmed that 2024 is the last year for the Arteon, which means the ID.7 EV will be a direct replacement when it finally arrives. There will likely be a small overlap, as leftover Arteon models sit alongside the ID.7 EV on dealer lots through the end of 2024.
Moreover, the new Volkswagen electric sedan will be less powerful than the Arteon at 282 horsepower vs. 300 horsepower. Granted, Volkswagen has said that a more powerful, all-wheel drive variant is also coming. That should offer 330 horsepower, though there will almost certainly be a higher MSRP to go with it. That said, 300 miles of range should make the ID.7 an enticing option – though its high price tag will be a turn-off for many.
Right now, all of these details are simply speculative based on European markets and the little information we have from VW so far. But unless something major changes between now and next summer, the VW ID.7 faces an uphill battle in achieving a lasting foothold in the U.S. market. And that’s unfortunate, because if it’s anything like the Arteon, it will be a beautiful and enjoyable car to drive.