VW Drops Tiguan Prices By Up to $2,200

Volkswagen is going after compact crossover buyers even harder this year, lowering the price of the Tiguans by as much as $2,180.

The move is an attempt to “conquest customers” in the highly competitive segment, according to a report from Automotive News.

In a notice that was sent out Thursday, VW told dealers that it’s cutting the sticker price for base model S trim Tiguans by $600, cutting the price for the SE trim by $2,180, and the SEL trim by $1,460. Prices for the highest SEL Premium trim, though, remain unchanged.

That brings starting prices down to $25,495, $27,650, and $31,990 for S, SE, and SEL trims (in FWD), respectively. The SEL Premium trim, with all its whizbangery, remains at $37,150.

The new Tiguan premiered this year and played a big role in VW selling 7% more vehicles this year than last. That said, though, it didn’t sell as well in December as the Tiguan it replaces.

Part of that might come down to the fact that VW is still selling the Mk1 Tiguan as the Tiguan Limited (whose $22,860 starting price remains unchanged).

Regardless, taking a bigger piece of the lucrative compact crossover segment is central to VW’s growth plan. According to Automotive News, the segment grew 6.2% last year and with sales of non-SUVs slowing in inverse proportion.

Despite that, though, VW remains a relatively small player in the segment. With sales of a little over 21,000 new Tiguans last year (though it only sold for the half the year), it is far outmatched, sales-wise, by Toyota, Honda, Ford et al., which all sold more than 100,000 compact crossovers last year.

A price drop, along with plans to build a Tiguan variant, should help VW take a bigger slice of the compact crossover pie than it currently is.

[source: Automotive News]

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