Volkswagen Cancels North American Release of ID.7 EV Due to Current State of the EV Market

Mark
Volkswagen Cancels North American Release of ID.7 EV Due to Current State of the EV Market
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Volkswagen has officially scrapped plans to sell the ID.7 electric sedan in North America. The car was supposed to be a key EV model for the brand, but things didn’t go as planned. According to a recent report, VW blamed ‘market challenges’ for the decision, leaving the ID.7 only available in Europe and China.

The car was first introduced in 2023, and VW had big hopes for it. The plan was to launch in North America in 2024, but by May of that year, it was already delayed indefinitely. Now, the delay has turned into a complete cancellation.

While the ID.7 is already selling in Europe, it never got off the ground in the U.S. Pricing was never confirmed, but estimates put it between $50,000 and $60,000. The sedan was expected to come with a single-motor, rear-wheel-drive version producing 282 horsepower.

A dual-motor, all-wheel-drive version was also in the works. The 77-kWh battery promised around 300 miles of range per charge.

A VW spokesperson told The Drive that the decision came down to the ‘ongoing challenging EV climate.’ While EV sales are growing, they haven’t kept up with automakers’ high expectations.

The problem could get worse if the Trump administration rolls back Biden-era EV incentives. The $7,500 federal credit helped make EVs more affordable, and without it, the price gap between gas and electric cars could widen.

Even before the political uncertainty, some U.S. dealers weren’t convinced the ID.7 would sell well. Automotive News reported that dealers worried the mid-size electric sedan market was already crowded. With competition from the Tesla Model 3, Hyundai Ioniq 6, and BMW i5, VW may have decided it wasn’t worth the risk.

Despite this setback, VW isn’t giving up on EVs in North America. A spokesperson said electric cars remain ‘a core part of Volkswagen’s long-term product strategy.’

Instead of sedans, the company is betting on models like the ID.Buzz, a retro-styled electric van, to win over American buyers. SUVs and crossovers are also a bigger focus, since those are what U.S. drivers seem to want the most.

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Mark is the kind of person who gets way too excited about new software updates and can’t resist taking apart gadgets—just to see if they can put them back together. With years of experience in tech journalism and a love for all things digital, Mark writes about the stories behind the screens, from game-changing innovations to the everyday tech that keeps life running smoothly. Outside of work, they’re the go-to “tech support” for friends and family, whether it’s fixing a printer that won’t cooperate or explaining why Grandma’s laptop keeps showing pop-ups. When Mark isn’t glued to their screen, they’re probably building their dream PC, rewatching sci-fi movies for the hundredth time, or testing a gadget that promises to “change everything.” Spoiler: they’ll let you know if it actually does.