The All-New VW ID.3 Electric Car, Continued Incredible Rise of EV Sales And The Collaboration Between SMMT And Kama!
The Future Is Here : VW’s £30,000 Electric ID.3 Will Go On Sale Next Year With A 260-Mile Range In A Bid To Blow Tesla’s ‘Affordable’ Model 3 Out Of The Water
As part of the ambitious EUR 9 billion investment program, the German automotive manufacturer, Volkswagen, released details of the Golf-sized all-electric ID.3 car. The ID.3, a pure electric car, is part of the ID electric vehicle range that will comprise up to 20 EVs.
The launch version of the ID.3, the 1stedition, is priced below £30,000 with a zero-emission range of 261 miles. The ID.3 claimed WLTP range is higher than the Tesla Model 3, with the Model 3 priced £10,000 higher.
The 1stedition will be available form mid-2020, with two other variants of the ID.3 joining the debut edition.
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In a recent e-zoomed blog post, we have asserted, that the German automotive manufacturer, Volkswagen has come a long way since the 2015 ‘dieselgate’ scandal. We believe the company’s commitment to electrification is both strong and comprehensive. VW is positioning itself rapidly to lead the race to ‘mass zero-emission road transportation‘. The ID.3 is an excellent example of the ‘key ingredients’ required for success i.e. placing ‘affordability’ and ‘performance’ as the cornerstones of electric vehicle development and production. The race to leadership in the fast evolving electric vehicle industry certainly pivots around these key themes.
However, despite the range and performance of the ID.3, we do not believe it will successfully derail the Tesla Model 3 leadership. Tesla has created an ‘iconic’ and ‘loyal’ following, and matching that will take much more than just increased range and lower costs.
Demand For Electric Vehicles Surges In The UK
Despite the drop in UK wide automotive sales by 1.6%, electric cars, in particular, battery electric vehicles (BEVs), increased by a whopping 377.5% in August. According to the automotive industry body, SMMT Chief Executive Mike Hawes “August is typically the new car market’s quietist month, so huge increase in electric vehicle registrations is very visible but specially welcome”.
Like in the United Stated, the hugely popular Tesla Model 3 contributed to the significant increase in UK registrations. A total of 2,082 Tesla Model 3 were registered in August 2019.
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Yes, critics of EV adoption, will be quick to point out, that despite the significant percentage increase in the sales of pure electric cars, in absolute numbers, BEVs are still a small percentage of the market. This assertion is not incorrect, but nor does it narrate the entire EV industry canvas.
We have written numerous times on this theme is the e-zoomed blog. There is now a clear and robust theme emerging in the UK and global automotive market. Diesel internal combustion engine (ICE) vehicles are witnessing successive and significant drop in market share. Diesel, once a favourite, is being comprehensively orphaned by consumers, in particular, in western markets.
It is only a matter of time, that diesel sales will be negligible and certainly much sooner than the ban by the UK government. This is where the narrative becomes interesting. The displacement of diesel will benefit the rapid shift to electrification, the most. In fact, within the medium term, EVs will become the ‘favourite’ of the UK automotive sector. Those determined to undermine the potential success of electric vehicles in the UK, are simply doing this to promote their respective agendas.
Mark our words: The rise of pure electric vehicle mass adoption has commenced and in the medium term will be comprehensive.
Closer Ties For British And Korean Automotive Sectors As SMMT And KAMA Sign New Agreement
The Society of Motor Manufacturers and Traders (SMMT) announced on 10thSeptember 2019, an MoU with its counterpart in South Korea. KAMA, the Korean Automobile Manufacturers Association signed the memorandum of association at the Frankfurt Motor Show 2019 this week. The agreement is set to benefit the automotive sector in their respective home markets by ‘fostering greater collaboration’.
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Though the reward of such an agreement, will take significant time and effort to materialise, we believe this is an excellent initiative by both the SMMT and KAMA. In particular, given the challenges in the UK market, compounded by the continued debacle over BREXIT. Developing relationships with international counterparts, far beyond the UK/ European borders will be key for the long term sustained development and growth of the UK automobile sector. Well done SMMT!
