01-08-2025
Next-Gen Volkswagen ID.4 Has the Tesla Model Y In Its Sights
The new ID.4 is going to be a 'huge step up,' according to VW
Reception for the Volkswagen ID.4 is probably best classified as 'lukewarm.' While not a bad electric vehicle, it stumbles at some key checkpoints. It doesn't scratch that 300 miles of range itch, and its most powerful variant touts a 335-horsepower dual-motor setup that is decidedly middle of the pack. Only okay software, combined with positives like a fairly refined driving experience and competitive pricing, makes the ID.4 easy to like but perhaps difficult to fall in love with. However, that might be about to change, as Volkswagen inches closer to bringing significant changes to the model.
2025 Volkswagen ID.4
2025 Volkswagen ID.4
Arguably, many of the areas in which the current VW ID.4 falls flat are simply due to age. The car debuted back in 2020, and while that was only five years ago, the EV landscape has shifted drastically since then. In words shared with Autocar, Volkswagen CEO said the next iteration of the ID.4 is a 'huge step up. It is still our most important electric vehicle in numbers,' Shafer said. Perhaps more relevant: 'It's also able to stay competitive for a while.'
The new VW ID.4 might grow and will definitely perform better
According to Autocar, the newest ID.4 is known internally at VW as the 'electric Tiguan.' That implies growth in overall dimensions and brand positioning that should let the ID.4 find a larger target audience. It also implies that this is much more than a simple mid-lifecycle refresh, but it's still too early to tell. More definitive changes extend to borrowing more modern technology from models like the ID.7. Kai Grünitz, technical developer with VW, has already confirmed to Autocar that the new ID.4 will get a completely new interior layout, complete with — gasp! — real physical buttons in place of sliders and haptic buttons.
2025 Volkswagen ID.7 —
Source: Volkswagen
Looking elsewhere in the current electrified Volkswagen lineup, we also find a good candidate for where the ID.4 will borrow its next-generation powertrain: the ID.7. If that happens, it's where the ID.4's real transformation will occur, as the VW ID.7 delivers around 300 miles per charge after considering the differences between WLTP and EPA testing. It also delivers 286 horsepower in its base form — an 85 horsepower bump over the now-discontinued base ID.4 and just nine horsepower short compared to the arguable king of EV SUVs — the Tesla Model Y.
2025 Tesla Model Y —
Source: Tesla
What Tesla has to fear
The Model Y is undeniably a solid vehicle, but for around the same price, a newly refreshed ID.4 might make it really hard to justify stepping foot in a Tesla store. A more comfortable ride, better ergonomics, and nearly the same range and power make the base ID.4 certainly more attractive than a similarly equipped Model Y. With the ID.7 GTX, VW also proved that they could make a relatively fun-to-drive EV. One that, while down on power compared to the Model Y Performance, might just be the more entertaining electric SUV to drive.
Final thoughts
Tesla only needs to worry if the 286-horsepower battery pack replaces the old base ID.4 that got axed for the 2026 model year. That car's starting price hovered around $42,000, as opposed to the current entry point commanding a dearer $47,000. Unless VW is bringing significant power and range increases to the ID.4 past what the ID.7 is already capable of, it will otherwise be hard to justify picking the ID.4 over the $45,000 Tesla Model Y. We'll have to wait and see as more information trickles out. The refreshed or next-generation VW ID.4 is due next year.
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