Volkswagen plans to focus sales of its upcoming entry-level electric vehicle—priced at 20,000 euros ($21,580)—on the European market, the brand’s chief announced on Wednesday.
The car, expected to launch in 2027, requires advancements in battery cost reduction before it can hit the market at that price.
This model will be the first in Volkswagen’s lineup to incorporate software from its joint venture with U.S.-based EV maker Rivian. The new software design reduces the number of electronic control units and minimizes wiring, making the vehicle lighter and simplifying production.
As part of its strategy for affordable EVs, Volkswagen aims to introduce eight budget-friendly electric models by 2027. This includes the ID.2, a 25,000-euro EV slated for release later this year.
Currently, only a few electric models in Europe, such as the Dacia Spring and Leapmotor’s T03, are available for under 20,000 euros. However, this year will see the introduction of 11 new EVs priced below 25,000 euros, including the Renault R5, Fiat Grand Panda, and Hyundai Inster.
Talks between Renault and Volkswagen to jointly develop an affordable electric version of the Renault Twingo fell through last year. As a result, Renault will move forward with launching the model independently in 2026.
Amid growing competition from Chinese automakers, Volkswagen is actively cutting costs and optimizing production to secure funding for its budget-friendly EV lineup and maintain its market position. Photo by User:High Contrast, Wikimedia commons.