WionDrive News Desk 
Volkswagen has postponed its plans to introduce the ID.7 electric vehicle (EV) sedan in the United States and Canada, just a year after its high-profile debut in New York City. The German automaker cited changing “market dynamics” as the reason for delaying the launch of the ID.7, which has already been on sale in Europe and China since late 2023.
The decision comes amid a slowdown in EV sales growth in the US market. According to Kelley Blue Book (KBB), EV sales rose only 2.6 per cent year-over-year in the first quarter of 2024, compared to a 15.2 per cent increase in the fourth quarter of 2023 and a 46.4 per cent growth in the first quarter of the previous year.
In addition to the waning demand for EVs, the sedan body style has been losing popularity among American consumers for some time. Earlier this month, Chevrolet announced its decision to discontinue the Malibu sedan after 50 years and 10 million units sold, to focus on SUVs, crossovers, and EVs.
Volkswagen’s decision to delay the ID.7’s launch in the US and Canada represents a shift from the optimism expressed a year ago by Pablo Di Si, the president and CEO of Volkswagen Americas, who was bullish on the prospects of the ID.7 in the US market.
“Our focus continues to be SUVs, but obviously the sedan market represents 16 per cent of the total market in the US … and bringing the ID.7 with its all-new leather premium interior, 300 [mile] plus range in 2024, it is the right approach to take for VW,” he said at the ID.7’s April 2023 debut.
Volkswagen of America’s decision to pivot away from launching the ID.7 EV sedan in the US and Canada aligns with the parent company’s re-evaluation of its electric vehicle strategy.
Initially, Volkswagen had ambitious plans to introduce 75 new EVs over the next decade, including 25 models for the North American market. However, recent statements from Volkswagen Passenger Cars CEO Thomas Schäfer suggest a shift in the product portfolio is necessary to meet evolving customer preferences.
According to Schäfer, customers, including those in China and the US, are currently more interested in plug-in hybrid vehicles. Volkswagen offers plug-in hybrid versions of the Passat sedan and Tiguan SUV in Europe but currently lacks hybrid options in the US market.
To accelerate its EV development and reduce costs, Volkswagen has recently embraced strategic partnerships, particularly focused on the Chinese market. The German automaker has announced plans to collaborate with XPeng, a Chinese electric vehicle manufacturer, to produce two new EVs under the Volkswagen brand, utilizing XPeng’s software and EV engineering capabilities.
