VW coy about ID. Polo and ID.3 Neo EV launches in Australia

Volkswagen Australia executives have stayed vague about the introduction of the brand’s smaller electric vehicles (EVs) Down Under.

Speaking with CarExpert, VW’s local brand director Piergiorgio Minto said Australia’s heavy lean to SUVs makes the business case a little harder for the German brand’s newest compact EV models: the ID. Polo and ID.3 Neo hatchbacks.

“It’s a question of the segment size and the market potential. In this case it’s quite different [to other models] because you know better than me that Australia has a stronger SUV segment… so it’s a completely different structure of the market [to Europe] with different pricing,” Mr Minto said.

“We are having a look into every model that we have [globally], and we will decide case by case whether it makes sense or not to add it [to the Australian lineup]. Generally, everything that is electrified will always get priority.”

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Head of product for VW Passenger Vehicles Australia, Arjun Nidigallu, added: “For us it’s a slightly different market because the expectation of a price point and a certain range has already been well established”.

“For us to be successful from a volume perspective and make sure our dealers get to sell as many cars as they can, we need to fall on that curve at some point. The segment size also makes a difference.

“We’re not against non-SUVs – I think because how much of a focus there is on SUVs at the moment, that could be a misapprehension – but certainly we’re on the lookout, it just has to make market sense from a range, pricing and packaging perspective,” Mr Nidigallu added.

Mr Minto and Mr Nidigallu’s comments around segment size likely refer to the dwindling sales of Australia’s passenger vehicle segments, with price-sensitive compact vehicles fighting for an ever-shrinking piece of a small pie.