Volkswagen cuts the price of its new electric SUV by 17% just five months after launching it

Volkswagen is making another move in China with one of its latest electric models. The ID. UNYX 08, an SUV developed in partnership with XPeng, has just received an update accompanied by a significant price cut just five months after its launch.

The new ID. UNYX 08 is currently available in China for 189,900 yuan, which is approximately 24,400 euros at the current exchange rate. This price represents a reduction of 40,000 yuan, or about 5,100 euros, from the launch price of 229,900 yuan, roughly 29,600 euros, in April last year. In percentage terms, the discount amounts to 17.4%.

This is not merely a small promotional effort to boost sales for a few days. Volkswagen Anhui has introduced an updated version of the model along with a new pricing structure, setting the prices for the three trims at approximately 189,900, 219,900, and 249,900 yuan, which is roughly equivalent to 24,400, 28,300, and 32,100 euros respectively. The official reference prices remain higher at 219,900, 239,900, and 269,900 yuan.

The move becomes even more interesting when looking at sales figures. Data from the China Association of Automobile Manufacturers shows that only 133 ID. UNYX 08 units were registered in July and 379 in August. These are modest numbers for a vehicle of this size, helping to explain why Volkswagen has decided to take action so soon in a market where Chinese manufacturers are exerting significant pressure on prices.

The ID. UNYX 08 is a large five-seater SUV, measuring 5 meters in length and 3.03 meters in width. It is the first production model developed jointly by Volkswagen and XPeng as part of the German automaker’s new strategy in China, aimed at accelerating the development of new electric vehicles by leveraging local technology as well.

In terms of technical specifications, the range comes in three versions. The Pure uses a battery of around 82 kWh and a rear electric motor with 230 kW of power, while the Ultra Plus increases the battery capacity to about 95 kWh and retains a single-motor, rear-wheel-drive configuration. The Max Plus also features a battery of around 95 kWh but adds a second electric motor to provide all-wheel drive. The higher-end versions additionally include dual-chamber air suspension and variable damping.

The range ratings are based on the Chinese CLTC testing cycle. The Pure claims 630 kilometers of range, the Ultra Plus reaches 730 kilometers, and the Max Plus has a range of 700 kilometers.

All versions use an 800-volt electric architecture and lithium batteries with CATL technology. Fast charging allows the battery to go from 10% to 80% in about 20 minutes, a figure that puts the ID. UNYX 08 in a competitive position among large electric SUVs.

The price cut comes at a significant moment for Volkswagen Anhui. The ID. UNYX 08 was developed in just 24 months from the start of technological cooperation between Volkswagen and XPeng until it went into production, as part of the company’s strategy to design in China for the Chinese market.

The problem is that the development speed has not yet translated into particularly high sales. Volkswagen has also turned to selected FAW-Volkswagen dealerships to expand the model’s presence through dedicated spaces within their facilities, while trying to gain visibility in a market that is becoming increasingly difficult for traditional manufacturers.

A Volkswagen electric SUV reducing its starting price by 17.4% just five months after entering the market is a clear indication of the intensity of the price war currently underway in China. It also shows how even large European manufacturers must react quickly when a new model fails to meet expectations.