Flop in China: VW hardly finds buyers for his new ID.7 Vizzion

Market launch of the VW ID.7 Vizzion in China

Volkswagen introduced its new VW ID.7 Vizzion on the Chinese market on December 15th. This e-sedan, a result of the joint venture between FAW and Volkswagen, differs from the European ID.7 and is available from around 237,700 Yuan (approx. 30,600 euros). For comparison: In Germany, ID.7 starts at almost 57,000 euros. Despite the lower price in China, only 300 orders were recorded in the first three days after the market launch.

Missing resonance: Has VW misjudged the needs of Chinese car buyers?

According to the Carnewschina industry portal, the Chinese market research agency 车 fans (Carfans) analyzed the provisional sales figures. According to this, each dealer recorded an average of zero until an order for ID.7, which amounts to a total of 300 orders throughout China. The conversion rate was only five percent - on average, one of 20 visitors in the dealership actually bought the car. The report shows that 80 to 90 percent of buyers are men with an average age of 40 years. ID.7 is considered a second car for the family in China.

Causes of the paralyzing sales

China is the largest and most important automotive market for Volkswagen. The ID.7 Vizzion should complete the upper end of the model range, but the high price scares many customers. The visitors to the car dealerships were satisfied with the spacious interior, but the additional costs for functions such as seat heating met with dissatisfaction.

These feedback indicates that VW misjudged the demand in China. The configurations of the ID.7 Vizzion offered do not seem to meet the wishes of the customers. Many apparently are waiting for preferred configurations, while the current models in the car dealerships should remain difficult to sell.

Conclusion

The disappointing sales figures of the VW ID.7 Vizzion in China are a setback for Volkswagen. The high expectations of the e-limousine have not been met, which shows that VW misjudged the needs and preferences of Chinese car buyers. Now it is important to react quickly and to adapt the strategy to regain the trust of the Chinese customers and increase sales.