Why on Earth Does the Volkswagen ID.7 Cost Over $10k More Than the Hyundai Ioniq 6?
The Volkswagen ID.7 recently made its North American debut at the Los Angeles Auto Show. The ID.7 is confirmed to be coming to the U.S. market at some point in 2024. Although pricing for the U.S.-spec model isn’t official yet, we have a good idea of what it will cost based on the European model. And it won’t be cheap.
Let’s examine this electric Volkswagen and whether it will be a decent value compared to electric sedans already on the market.
Introducing the Volkswagen ID.7 EV
The Volkswagen ID.7 is the flagship electric sedan of the German brand’s lineup. In fact, in the U.S. market, it will be the only electric VW sedan when it arrives in 2024. It will join the ID.4 SUV and the upcoming ID. Buzz van, which should arrive at dealerships around the same time.
Volkswagen is positioning the ID.7 as a premium midsize sedan with a “high-tech interior concept” and a torque rating of 402 lb-ft. The European range estimate is 386 miles, but the EPA estimates will probably be lower than that.
It looks like the ID.7 will straddle the line between mainstream and luxury, as Volkswagen models sometimes do. It will compete with luxury EVs like the BMW i5 and Mercedes-EQ EQE but also with EVs from mainstream brands like the Hyundai Ioniq 6.
How much will the VW ID.7 cost?
Pricing of the Volkswagen ID.7 hasn’t been confirmed for the U.S. But, it has for Europe, where it starts at €56,995. As of this writing, that shakes out to $60,443 USD. Even if they cut the price a little for competitive reasons, it will likely start up in the mid-$50k range. Car and Driver gives the ID.7 a generous starting price estimate of $50,000.
Let’s say the 2024 Volkswagen ID.7 starts at around $55,000 in the U.S. If that’s the case, it will be priced lower than the BMW i5 and Mercedes-EQ EQE but higher than the Tesla Model 3 and Hyundai Ioniq 6. Even the Polestar 2 starts at just under $50k.
Volkswagen ID.7 vs. Hyundai Ioniq 6
When the Volkswagen ID.7 comes out next year, it will be a direct competitor to the Hyundai Ioniq 6. That might sound like an odd comparison. However, since so many EVs available in America are SUVs, there are few electric sedans from non-luxury brands.
The Volkswagen ID.7 is about four inches longer than its Hyundai rival, but they can both be considered midsize sedans. The ID.7 will debut with a single-motor powertrain and rear-wheel drive, but a dual-motor version is planned for later. Conversely, the Ioniq 6 is already available with your choice of a single-motor or dual-motor powertrain. The longest-range version of the Ioniq 6 gets an EPA-estimated 361-mile range, and it’ll be interesting to see if the EPA range figure for the VW comes close to that.
The single-motor setup in the ID.7 makes 282 hp and 402 lb-ft of torque, which beats the single-motor Ioniq 6 with 225 hp and 258 lb-ft of torque. The SE Standard Range model is slower still with only 168 hp. However, the dual-motor Ioniq 6 produces 320 hp and 446 lb-ft of torque, making for a pretty thrilling drive.
Finally, there’s the price. According to Edmunds, the 2024 Hyundai Ioniq 6 SE Standard Range starts at $37,500. The more powerful and longer-range SE starts at $42,450, and the dual-motor powertrain begins at $45,950. If the Volkswagen ID.7 starts around the mid-$50k range for the single-motor model, you might not be able to get a dual-motor model for under $60k. When fully loaded, its price will probably overlap with luxury EVs like the BMW i5.
Even with the nice, high-tech interior and sleek design of the ID.7, we’d rather spend less and get a dual-motor Ioniq 6.