Volkswagen’s performance in the electric vehicle (EV) market faced significant challenges at the close of 2024, particularly with its ID.4 crossover. U.S. sales of the ID.4 plummeted, experiencing a 94% drop in the fourth quarter and a 55% decline overall for the year. Much of this can be attributed to the vehicle’s absence from the market, as production and sales were halted due to a serious issue with its door-opening mechanism. This problem led to a recall of about 100,000 ID.4 vehicles, which significantly impacted the car’s sales momentum.
However, Volkswagen recently announced that the ID.4’s production halt is over, and sales will resume in the U.S. This is seen as a positive turning point for the automaker, with plans to restore the ID.4 to its previous position as one of the best-selling EVs in North America. Volkswagen is also looking to incentivize buyers by offering competitive lease deals, positioning the ID.4 as one of the most affordable electric compact SUVs on the market. This strategy is intended to make the car more accessible to potential customers, especially after its hiatus.
The ID.4’s journey has been rocky, marked by setbacks like the September recall. This halted production due to faulty electronic door handles, which could unexpectedly open while driving. The recall affected ID.4 models produced between 2021 and 2024. VW struggled to obtain replacement parts, delaying repairs until just before Christmas. However, with the parts now available, dealerships can begin fixing the affected vehicles, allowing Volkswagen to once again sell the ID.4 to customers.
The timing of the recall meant that the ID.4 missed out on the critical end-of-year sales period. This period, spurred by aggressive promotions and concerns about the future of the EV tax credit, typically sees a spike in EV purchases. Despite this, Volkswagen is hopeful that the ID.4 can regain traction in the market, aided by its appealing leasing options. This is particularly important given the loss of the EV tax credit for the ID.4 in 2025, which makes the vehicle less financially attractive compared to its competitors.
Despite the hurdles Volkswagen has faced, the latest test of the 2024 ID.4 has shown positive results. The car, available in various trims, offers solid range, fun driving dynamics, and practicality. While the base model starts at $39,735, the higher-end Pro S trim can reach up to $53,875, with up to 291 miles of range on a full charge. As Volkswagen aims to overcome its setbacks, it will be interesting to see if the ID.4 can regain its competitive edge and carve out a place in the increasingly crowded EV market.