Volkswagen has announced a delay in the North American launch of its all-electric ID.7 sedan, initially planned for 2024. This decision comes as a response to changing market conditions in the electric vehicle (EV) sector. The company emphasized its commitment to making decisions based on market dynamics and customer feedback, leading to the postponement of the ID.7’s debut in the United States and Canada.

The ID.7 has been available in Europe since last year and offers battery packs of 77.0-kilowatt-hours and a future 86.0-kilowatt-hour option, providing approximately 300 miles of range. The ID.7 is comparable in size to the discontinued Passat and has recently added a wagon variant to its lineup. Although U.S. pricing details were not disclosed, the base rear-drive version was expected to start around $50,000.

In a first drive review published in November, the ID.7 received mixed feedback, being described as “just okay.” While it didn’t stand out significantly, its smooth and quiet ride made it an appealing alternative for those seeking an electric vehicle similar to the Honda Accord or Toyota Camry.

Despite the delay of the ID.7, Volkswagen reported a 27.5-percent increase in overall sales during the first quarter of 2024, primarily driven by its SUV offerings. The postponement of the ID.7 comes at a time when the EV market is experiencing challenges such as high costs and inadequate charging infrastructure, leading to slower adoption rates.

Volkswagen is not abandoning its EV ambitions entirely. The company plans to launch the ID. Buzz, an electric van inspired by the classic Microbus, in the fourth quarter of 2024. This move demonstrates Volkswagen’s ongoing commitment to expanding its electric vehicle lineup despite current market hurdles.