- VW slams the brakes on the ID.7’s North American launch amidst a volatile EV market
- The fully electric sedan was initially expected to arrive in the U.S. and Canada in 2024
- An updated timeline for the ID.7 launch was not provided
Volkswagen announced that the market launch of the ID.7 sedan in the U.S. and Canada has been delayed. The German carmaker cited changing market dynamics as the reason for the delay and didn’t provide a new launch date for the Tesla Model 3 rival.
The official announcement from VW states: “Volkswagen is committed to making market-driven choices while listening to our customers. As market dynamics continue to change, Volkswagen is delaying the introduction of the ID.7 sedan in the U.S. and Canada.”
More: The VW ID.7 Is An Electric Passat For A New Generation
During its global unveiling in April 2023, Volkswagen had communicated a 2024 launch date for North America. The company didn’t give away any pricing information, but described the EV as the flagship of the ID range, suggesting it will be more expensive than the ID.4.
We’re aware that the North American ID.7 will be imported from the Emden factory in Germany, making it ineligible for US tax credits, at least for consumers purchasing rather than leasing. Nevertheless, launching into the mid-size electric sedan segment without tax credit eligibility could be risky. Therefore, VW might want to explore other options, such as moving production of the ID.7 to the Chattanooga Tennessee Assembly Plant, alongside the ID.4.
Overall, it seems like VW opted for a “wait and see” approach, especially given the current trend of buyers favoring hybrids over EVs. It seems the company didn’t want to risk introducing a premium-priced and potentially slow-selling ID.7 sedan in North America, particularly as SUVs continue to drive sales growth in the region.
The VW ID.7 is already available in Europe since last fall, followed by a market launch in China in late 2023. Volkswagen claims that customer demand for the electric ID.7 sedan and wagon models is “higher than expected” in the Old Continent, especially in Germany.
The recently updated ID.4 crossover is currently the only EV in VW’s North American lineup. The German carmaker confirmed that the next EV available to customers in the U.S. and Canada is the much-anticipated ID. Buzz, expected to reach dealerships in the fourth quarter of 2024.
