Video: 2023 VW ID.4 will be a Tiguan-priced EV

UPDATE: 2023 Volkswagen ID.4 walkaround review

While buyers wait for Volkswagen's long-anticipated ID.4 to arrive as its first EV offered in Australia, we've had a chance to get up close with a car specially flown in for show-and-tell. Hit the play button above to see what we think.

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Volkswagen Australia’s first electric cars, the ID.4 and ID.5, will cost about the same as an equivalent Tiguan mid-size SUV when they arrive next year.

Set to launch towards the end of 2023, the ID.4 is tipped to be specced and priced similarly to the Tiguan R-Line – which currently retails for $57,690.

The swoopier ID.5, meanwhile, will carry a similar price to the performance-focused Tiguan R meaning a starting price around $68,990.

“We aren’t interpreting this EV journey as a niche thing,” said VW Australia’s managing director for passenger vehicles, Michal Szaniecki. “Already in five years over half our portfolio will be EVs so we talk mainstream here.

“That means this car here [the ID.4] will more or less be in the range of Tiguan R-Line. ID.5 maybe Tiguan R.”

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Built on VW’s dedicated electric MEB architecture, the ID.4 and ID.5 are 4.6 metres long and roughly the same size as the existing Tiguan mid-size SUV.

“So very similar exteriors for a very similar price point, but with interiors that are much larger and much more comfortable, not to mention the car is simply better,” added Szaniecki. “There’s less noise, they’re very safe and it’s just a different experience for a very similar price for Tiguan R-Line or Tiguan R.”

If VW can achieve the desired price positioning, the ID.4 and ID.5 will be more affordable than their key rivals. A Tesla Model Y starts at $72,300 and the Hyundai Ioniq 5 and Kia EV6 cost $69,990 and $72,590 respectively for their cheapest variants.

Australian spec of ID.4 and ID.5 is still being locked in, but it’s likely the first batch will be richly equipped and be based on the Pro Performance trim level sold in Europe. The Pro Performance has a 77kWh battery pack, produces 150kW/310Nm and has a claimed WLTP range of around 520 kilometres.

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VW has two British-spec ID.4s in Australia currently, and Szaniecki confirmed Aussie cars will mostly mirror their equipment levels – which includes a panoramic roof, bolstered sports seats and an electric tailgate.

“Here in Australia we like our top trims, and the car you see here is probably the most loved one, so we’re starting with this one,” said Szaniecki. “We want to make sure our range and choice is very simple. The current customer journey for ICE [internal combustion] is very complicated, but for EV it will be very simple.

“That may mean we don’t need so many variants. Within the models [ID.4 and ID.5] one version is 100 per cent, two is very likely and three/four/five is TBC.”

Szaniecki did add, however, that even cheaper versions of the ID.4 and ID.5 are possible once the initial batch of cars are launched. VW sells versions with smaller batteries and less equipment in Europe, meaning a lower spec ID.4 could land in the mid-$50K bracket here in Australia.

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“We’re now completing the whole portfolio of ID.4 and one of them will be a level cheaper, yes,” he said. “I can’t confirm exactly how much because those discussions are now being held with HQ, but yeah, logically, it will be less expensive given the performance and [driving] range it will offer.”

A quicker, dual motor version of both SUVs, dubbed GTX, is also confirmed for Australia and earmarked for an early 2024 arrival. The ID.4 GTX produces 220kW from a larger 80kWh battery pack and has a claimed driving range of more than 500km.

“It’s on our agenda for sure to make sure GTX is joining our portfolio as soon as possible,” said Szaniecki. “It’s not likely [to be part of the initial launch] but it won’t be late after that. We’re making sure it’s coming very soon.”

The ID.4 and ID.5 will spearhead an influx of new electric models from VW that will also include the ID.3 hatchback and possibly the ID.Buzz van – the latter a modern interpretation of the iconic Kombi.

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The German brand has ambitious targets for local EV sales and hopes its aggressive pricing strategy will see it match or even eclipse Tesla in the near future.

“Our plan is infinity,” replied Szaniecki when asked about VW’s volume aspirations. “The car and performance is really, really great. It’s well positioned in pricing, so I think it can be really high. We’re going to start with a couple of thousand and reach maybe 10-12,000 cars a year. The sky is the limit here.”

VW Australia’s Product and PR communications manager, Daniel DeGasperi, added VW’s pricing strategy gives it a unique advantage over it competitors.

“People are asking when are EVs going to have price parity with ICE? And here we are saying ID.4 and Tiguan are going to sit side-by-side and I don’t think there’s another car or EV that can claim that,” he said. “Each EV will do different things, an EV6 or Ioniq 5 are very stylised, but the gap between their medium SUV and those cars will be much wider than what we will have.”