Volkswagen’s US-made 2023 ID.4 EV will start at $37,495

VW could buck the trend of ever-rising EV prices. The automaker has announced that the 2023 ID.4 electric SUV will start at $37,495 before the target fee ($1,295) and tax credits, or well below the price of its predecessor’s $41,230. The trick, as you might guess, is a smaller battery. The base model (now called the ID.4 Standard) uses a new 62kWh battery that boasts an estimated range of 208 miles. While that won’t excite anyone planning cross-country trips, it could make the EV a better value if you’re just looking for a commuter car.

There are also numerous technology upgrades. The ID.4 now comes standard with a previously optional 12-inch infotainment display, 45W USB-C, easier plug-and-charge functionality and intelligent park assist. All 2023 models now feature driver-initiated lane changes in Travel Assist. You can also expect a fancier interior with part leatherette seats on the standard model.

They still have strong incentives to buy higher-end configurations. The $42,495 ID.4 Pro gets an upgrade to an 82kWh battery with an estimated range of 275 miles and 170kW DC fast charging, while adding perks like a heated windshield, tow hitch, and variable compartment flow . An all-wheel-drive variant of the Pro starts at $46,295. All of these models are available in an S trim level that adds a panoramic roof, 12-way power seats, a power tailgate and more advanced lighting. The ID.4 S, Pro S, and Pro AWD S start at $42,495, $47,495, and $51,295, respectively.

At the higher end, the $50,195 ID.4 Pro S Plus and $53,995 AWD Pro S Plus offer 20-inch wheels, a speaker upgrade with a subwoofer, an “Area View” camera system, a three -Zone climate control and power folding exterior mirrors. They replace last year’s Gradient pack.

The cheaper model will be available in autumn. It comes just as VW has started US production of the electric vehicle and reflects the company’s shift strategy. It’s betting that a lower price point and trim upgrades will help undercut rivals in the $40,000 range like Ford’s Mustang Mach-E and Hyundai’s Ioniq 5. While it won’t be surprising if competitors offer similar options in the future, there’s a clearer reason to buy an ID.4 now than there used to be.

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