**One Auto-Volkswagen Announces Price Reduction of ID. Series Models in China**
One Auto-Volkswagen Company Limited (One Auto-Volkswagen) recently announced a price reduction for some models in its ID. series, with the highest price cut reaching 55,000 yuan (RMB). The Chinese automotive industry continues the price war trend from last year. Some industry experts believe that the “price war” will continue into 2025 and intensify significantly.
According to news from “Caijing” on February 24, One Auto-Volkswagen recently released a price reduction notice for some models in its ID. series. The price cut can be as much as 55,000 yuan, affecting the ID.4 CROZZ 2025 model and the ID.6 CROZZ. After the price reduction, these models are respectively priced starting from 139,900 yuan and 195,900 yuan. Additionally, customers can stack government trade-in subsidies up to 20,000 yuan and official trade-in subsidies up to 10,000 yuan.
The ID. series is Volkswagen’s line of pure electric vehicles, currently comprising a total of seven models.
Reports indicate that within the joint venture brand’s new energy vehicles (electric vehicles), the ID. series holds a significant market share. However, compared to new energy products introduced by Chinese domestic brands, the products of joint venture brands are relatively higher priced.
In China, competition in the new energy vehicle market is fierce. Since the beginning of 2025, several automakers have engaged in price wars and initiated price reductions to boost sales.
On the first day after the Chinese New Year, Tesla set off the price reduction trend. Tesla introduced the most significant offer ever for the Model 3, allowing customers to enjoy an 8,000 yuan limited-time insurance subsidy across the entire range. Additionally, customers can benefit from a 5-year interest-free loan policy and exclusive charging privileges.
On February 5, GAC Toyota launched a fixed-price promotion, offering a maximum direct discount of up to 44,000 yuan on some models. On February 10, Beijing Hyundai introduced fixed-price promotions for several models, with prices reduced by up to 42,000 yuan.
Following suit, several other automakers joined the price reduction wave. Currently, dozens of automakers are promoting sales through fixed prices, interest-free financing, and other schemes. Among them, Xiaopeng Motors, Zhiji Motors, and Great Wall Motors successively launched “Five-year 0% Interest” benefits.
Due to intense market competition, the price war in the Chinese automotive market has shown no signs of easing in recent years. Data from the China Passenger Car Association shows that in 2024, there were 227 car models that saw price reductions throughout the year, significantly surpassing the 148 models in 2023 and 95 models in 2022. In terms of the extent of price reductions, new energy vehicles saw a reduction of 9.2%, while conventional fuel vehicles saw a reduction of 6.8%. Overall, the average price reduction for new cars in the passenger vehicle market was 8.3%.
Moreover, in 2024, the Chinese automotive industry’s profit declined by 8% year-on-year, with a profit margin of only 4.3%, below the average profit margin of 6% for downstream industrial enterprises.
Data from the China Passenger Car Association shows that in January, the sales volume of new energy vehicles reached 744,000 units, a year-on-year increase of 10.5% but a month-on-month decrease of 42.9%. Additionally, the penetration rate of new energy vehicles in January was 41.5%, down from 49.4% in December. The growth rate of the new energy vehicle market slowed significantly in January.
Cui Dongshu, the Secretary-General of the China Passenger Car Association, believes that the competitive landscape among the top players in the new energy vehicle sector remains unsettled. The price war in 2025 is expected to continue and become extremely fierce.