Volkswagen of America reports that during the fourth quarter of 2023, its vehicle sales in the United States amounted to 96,486, which is up a whopping 40% year-over-year. In all of 2023, the company sold 329,029 vehicles, which is 9.3% more than a year ago. But the biggest contributor to the growth last year was the all-electric Volkswagen ID.4, which is locally produced at the Chattanooga, Tennessee plant.

In Q4, Volkswagen ID.4 sales amounted to 10,634, which is almost 13% more than a year ago and the second consecutive five-digit result after the record of 10,707 units in Q3. The ID.4 represents about 11% of Volkswagen’s total American sales.

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Volkswagen’s electric sales finally take off

After its diesel cheating scandal, VW was one of the first legacy automakers to vow to go all-electric. The ID.4 was meant to lead that charge in America. In 2023, it really took off, if sales are any indication.

The results are pretty positive, with the exception of the most recent growth rate, which significantly decreased.

Volkswagen BEV sales in Q4’2023 (YOY change):

• Volkswagen ID.4: 10,634 (up 13%) and 11% share

In 2023, Volkswagen sold in the U.S. more than 37,700 electric cars, which is a very strong 84% improvement over 2022. The all-electric car share amounted to 11.5%.

Volkswagen BEV sales in Q1-Q4’2023 (YOY change):

• Volkswagen ID.4: 37,789 (up 84%) and 11.5% share

For reference, in 2022, 20,511 Volkswagen ID.4 were sold in the U.S., which was 6.8% of the brand’s total volume at the time. Cumulatively, more than 75,000 ID.4 were delivered to customers in the country.

The year 2023, with close to 38,000 sales, marks significant progress in Volkswagen’s electrification, although we thought that an even higher result was possible.

The year 2024 is a bit of a mystery right now, as the Volkswagen ID.4 surprisingly lost its access to the full $7,500 federal tax credit, despite local production of the car as well as its battery cells in the U.S. Its cars are produced in Chattanooga, Tennessee, while the batteries are produced by SK Innovation’s SK On in Georgia. However, a Volkswagen spokesperson has told InsideEVs that the company is “optimistic” the ID.4 will qualify for tax credits eventually.

The entry-level 2023 Volkswagen ID.4 started at an MSRP of $38,995 (+ $1,295 DST, for a total of $40,290). After deducting the $7,500 incentive, it was effectively $32,790 in 2023. Currently, customers might be still able to get the incentive through leasing.

In the future, the ID.4 will be joined in the US by the Volkswagen ID. Buzz and Volkswagen ID.7, while its vehicles will get Tesla’s NACS charging port instead of the CCS1, starting in 2025.