Volkswagen is delaying its ID.7 electric sedan in North America

Volkswagen’s impressive ID.7 all-electric sedan — a vehicle type that is increasingly uncommon in the US — won’t be showing up on our shores anytime soon, the automaker announced on Wednesday. It cites changes in “market dynamics” as a reason as well as strong SUV sales in the US.

The ID.7, which launched in Europe in 2023, was supposed to be VW’s first electric non-SUV slated for the US market. The automaker claims that after introducing the ID.7 Tourer, which is the station wagon version of the sedan, customer demand for the models is “higher than expected, especially in Germany.”

The US is still getting the ID Buzz retro-inspired microbus EV this year as well as an updated 2024 ID.4 SUV with improved EPA range and performance. The lack of a new four-door family car in the lineup is a shame but checks out in the US, where many automakers are dropping sedans for more SUVs and trucks.

The ID.7 sedan would be a strong challenger to Tesla’s Model 3, which was recently redesigned, and Hyundai’s Ioniq 6. There’s a dearth of affordable all-electric sedans in the US, relegating the category to the upper luxury market, including the Lucid Air and Mercedes-Benz EQS and EQE, which all cost more than $70,000.

Volkswagen’s news follows other recent EV delays including Volvo’s EX90 and Ford’s next-generation EVs. Although EV sales in the US are continuing to rise, a lot of pure electric automakers are losing money thanks to price cuts, charging concerns, and political agendas. Legacy automakers, however, have gas vehicles to lean on and continue to post profits.