Part 5/8:
The revelation that BMW, a brand traditionally focused on the premium segment, is on track to surpass Volkswagen in EV sales showcases the latter's faltering momentum. With BMW's sales reporting a growth of 19% in the first nine months of 2024, Volkswagen finds itself outpaced even by a luxury brand.
Challenges in the Product Offering
One of the major barriers hindering Volkswagen's growth is the pricing of the ID.3. Positioned as a mass-market vehicle, its cost is disproportionately high compared to similar ICE models, causing potential customers to hesitate. The vehicle’s perceived value has not resonated with consumers, especially when alternatives from manufacturers like Tesla begin to offer comparable or superior products at a lower price.