Volkswagen is aiming for its new low-cost affordable electric vehicles (EV) to debut in 2027. The new affordable Volkswagen EVs are expected to be priced around $21,800 (20,000 euros). Volkswagen’s plan to build affordable electric vehicles as competition heats up in the EV space largely owing to the presence of strong Chinese rivals.
This decision to make EV comes after discussions with Renault about a potential collaboration on the project fell through earlier this month.
VW affordable EV
The target is to produce electric vehicles for the European market priced at around 20,000 euros ($21,746), Volkswagen said, adding that a world premiere was planned for 2027.
“It’s about entry-level electric mobility from Europe for Europe,” Volkswagen Chief Executive Oliver Blume said in a statement. “In doing so, we combine a clear commitment to Europe as an industrial location, a European industrial policy and ultimately act in the interests of European customers.”
Chinese competition
The project, dubbed ID.1, comes as Chinese rivals, some of which command a 30% cost advantage over Western peers, are muscling into Europe. The Chinese competition for EV is by grabbing market share and attack established carmakers on their home turf.
Volkswagen said it would rely on a high degree of localization in Europe for the project, which would also help to cut transport routes of components, thereby reducing emissions.
Last week Volkswagen said the European industry had between two and three years to prepare for the competitive threat, warning that the sector’s survival was otherwise at risk.
Volkswagen EV price
According to a statement on Tuesday, Volkswagen wants the price of the EV to be around $21,8000 (20,000 euros).
Volkswagen’s cost cutting measures
As part of efforts to fight competition Volkswagen is currently implementing 10 billion euros worth of savings and cost-cutting measures at its namesake brand by 2026.
Volkswagen brand boss Thomas Schaefer said that despite the low-price point, the planned entry-level model would set standards in terms of technology, design and quality. He added this had become more challenging due to higher costs for energy, raw materials and labor.
“One thing is clear: electromobility from Europe for Europe can only succeed with political support and competitive framework conditions,” Schaefer said.
Volkswagen affordable EV plan
Volkswagen’s ambitious plan to create an affordable electric car underlines the company’s commitment to sustaining and enhancing its competitive edge in the rapidly evolving automotive landscape. This initiative is not just about countering the immediate threat posed by Chinese manufacturers but also about laying the groundwork for long-term sustainability and leadership in the global EV market.
