US-built 2023 VW ID.4 starts lower at $37,495, under $30k after credits

The 2023 VW ID.4 is getting a new lower-priced configuration as VW’s Chattanooga, Tennessee, plant comes online to produce a smaller-battery, US-made model.

The 2023 ID.4 starts at almost $4k less than last year’s model, which started at $41,230. But it’s not really a price drop – this is due to a new battery size being introduced. The current “Pro” battery size is 82kWh, which gives an EPA-estimated range of 275 miles. Next year’s model is getting a smaller 62kWh “Standard” trim with 208 miles of EPA-estimated range.

In fact, the 82kWh Pro model is getting a price bump for next year, now starting at $42,495. So while prices are going up on the larger battery, the entry-level model is now more affordable.

Then, due to the presence of the $7,500 US Federal tax credit, the base model of the one VW-branded EV available in the US will now be under $30k if you qualify for the full tax credit – quite a reasonable price for a popular CUV EV (though still quite a bit more than the $25,600 Bolt).

VW still has plenty of tax credits available under the current scheme, which limits credits to 200,000 per manufacturer. So even if proposed tax credit changes (which should be voted on in the Senate imminently) don’t go through, those credits should still be available on the ID.4.

We’re still not certain about the details of the new tax credit as the bill hasn’t passed yet, but one of the proposed limitations depends on whether the car is built in the US or not. This might knock several cars out of the running, but since this new ID.4 is being built in Chattanooga, Tennessee, which just started production last week, it should be fine even under the new scheme.

There are a few more improvements for the 2023 model, including a new standard 12-inch infotainment screen, intelligent park assist and USB-C charging, and some interior and exterior design changes as well as new available wheel designs.

The larger 82kWh battery also gets a bump in fast charging capability, up to 170kW, and has access to plug-and-charge, a fast-charging standard that makes Electrify America stations easier to use. It comes included with three years of 30-minute complimentary charging sessions on EA chargers.

If you’re looking for a 2023 VW ID.4, check your local dealer inventory and ask if you can get in line for one. 2023 models should hit dealers in the fall. You can still look for a 2022 VW ID.4 as well, but given that VW is sold out for the year, you’ll have to get real lucky.

Electrek’s Take

I, for one, am glad to see smaller-battery options available and think we need more of this. Lots of people simply don’t need as much range as they think, and a lighter, cheaper, more efficient vehicle will be a better choice for them.

Further, smaller batteries mean that we can take more gas cars off the road with the same amount of battery supply – for every three 82kWh ID.4s, four 62kWh ID.4s can be made, theoretically resulting in fewer gas cars on the road in the latter case.

If you need the bigger battery, you can go ahead and splurge for it, but for those who don’t, this is a good price cut and a better vehicle that will fit their needs.