Introduction: A Turning Point for US EV Demand
The US market for electric vehicles faced a pivotal moment as the federal subsidy program expired at the end of September 2025. Against that backdrop, Volkswagen’s ID.4 emerged as a standout performer, signaling how a practical, city-friendly EV can still captivate buyers even when the primary federal incentive is withdrawn. In September 2025 alone, ID.4 sales reached 12,470 units, a 176% year-over-year increase, underscoring how policy shifts can influence consumer behavior and dealer strategies.
A Record September Packed with Context
VW reported strong September performance for the ID.4, contributing to a nine‑month total of 22,125 units in the United States. This momentum helped the ID.4 climb to sixth place in VW’s US lineup, highlighting the model’s role as a leading force in the brand’s electric-vehicle segment. The period coincided with the expiration of the federal EV tax credit program, which had subsidized many EV purchases. While the standard federal credit no longer applied to the 2025 ID.4, buyers could still access a significant incentive when leasing—up to $7,500—an option that many customers actively pursued as they completed leases before newer incentive structures took effect.
Leasing Incentives and Buyer Response
Even though the 2025 ID.4 didn’t qualify for the federal incentive, the $7,500 leasing incentive available to eligible buyers made the vehicle an attractive option in the lease market. This leasing flexibility helped the ID.4 bridge the gap created by the subsidy wind-down, encouraging families and urban drivers to consider a practical, compact EV with usable range and available technology. For many shoppers, a lease with a substantial upfront value proposition remained a compelling path to ownership, especially in markets where traditional gasoline vehicles still offered strong value propositions on price and maintenance costs.
Where the ID.4 Stands Among VW’s Best-Sellers
Despite the ongoing popularity of larger VW crossovers—Tiguan LWB and Atlas continue to lead the brand in the US with 48,951 and 51,181 units sold respectively—the ID.4 has become the definitive driver of VW’s electrified growth in city-oriented segments. The model’s blend of compact footprint, efficient electric powertrain, and practical features resonates with urban buyers seeking reduced fuel costs and lower emissions without sacrificing daily usability. The ID.4’s sales trajectory demonstrates that the electric SUV segment remains a crucial battleground for VW as it expands its electrified portfolio.
Market Implications: VW’s Strategy in a Subsidy-Shift Era
Market observers note that the end of federal subsidies does not signal an imminent decline in EV demand. Instead, it shifts the incentives toward retail promotions, leasing deals, and value-driven pricing. VW’s approach with the ID.4—focusing on efficient cost of ownership, favorable lease terms, and a practical, urban-friendly design—appears well-aligned with consumer priorities in 2025 and beyond. The ID.4’s rise helps VW strengthen its position in the growing city-EV category, complementing its more traditional, family-oriented SUVs and sedans.
What Buyers Should Know Now
Potential buyers weighing the ID.4 should consider the total cost of ownership, including lease versus purchase options, maintenance considerations, and any available state or local incentives that could supplement the federal program’s absence. While the federal tax credit has ended, regional discounts, dealer incentives, and competitive lease offers can still make the ID.4 an attractive option for urban and suburban drivers who value EV efficiency, simplicity, and daily usability.
Looking Ahead: VW’s EV Roadmap in the US
Volkswagen’s product strategy for the US continues to hinge on expanding a practical, affordable, and scalable electric lineup. The ID.4’s performance in September 2025 reinforces the notion that well-priced, city-oriented EVs will remain central to VW’s growth plan as policy landscapes evolve. Buyers seeking a no-nonsense electric SUV with strong daily usability should watch how promotions and inventory dynamics evolve through the remainder of the year.
