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Volkswagen halts ID.7 electric sedan launch in the U.S. amid market shifts

Initially launched in Europe in 2023, the ID.7 was set to be Volkswagen's first electric non-SUV offering in the U.S.

Volkswagen announced on May 22 that its impressive ID.7 all-electric sedan will not be arriving in the United States anytime soon. The decision is driven by changes in “market dynamics” and the strong performance of SUV sales in the U.S.

Initially launched in Europe in 2023, the ID.7 was set to be Volkswagen’s first electric non-SUV offering in the U.S. However, following the introduction of the ID.7 Tourer, the station wagon variant, customer demand has exceeded expectations, particularly in Germany. This high demand in Europe has influenced Volkswagen’s decision to prioritize those markets over the U.S.

Despite the ID.7 sedan’s absence, Volkswagen’s U.S. lineup will still see additions this year, including the ID Buzz, a retro-inspired microbus EV, and an updated 2024 ID.4 SUV with improved range and performance. The lack of a new four-door electric family car is notable, reflecting a broader trend in the U.S., where many automakers are shifting focus from sedans to more popular SUVs and trucks.

The ID.7 sedan would have been a strong competitor to Tesla’s Model 3 and Hyundai’s Ioniq 6, addressing the scarcity of affordable all-electric sedans in the U.S. market. Currently, the category is dominated by high-end models like the Lucid Air and Mercedes-Benz EQS and EQE, all priced above $70,000.

Volkswagen’s announcement comes amid several other recent delays in the EV market, including Volvo’s EX90 and Ford’s next-generation EVs. While EV sales in the U.S. continue to rise, many electric-only automakers face financial challenges due to price cuts, charging infrastructure concerns, and political issues. In contrast, legacy automakers like Volkswagen can rely on their gas vehicle sales to sustain profitability.

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