The vehicle is scheduled for release in Europe in 2027 with a price of approximately $20,800, although the specifics are contingent on the automobile being sent to North America.
- Volkswagen released an announcement on Wednesday, indicating a broader trend towards producing more affordable electric vehicles.
- A new entry-level model is expected to be released under the ID.2 brand in Europe by 2027.
- The plant in Wolfsburg is on track to become Volkswagen's "capital of our new all-electric compact class."
The world's second-largest auto manufacturer by sales volume announced plans today to make a change. The brand will introduce a new budget-friendly electric vehicle that will be one of several affordable models expected to be launched in the next few years.
At its annual meeting in Wolfsburg, Germany on Wednesday, Volkswagen stated that it has developed a three-stage strategy to remain competitive in the electric vehicle (EV) market, an area where the company has faced challenges. The first stage is "catch up," which will be followed by "attack" and then "lead." The recently announced affordable EV, known as the ID.1 (although no official confirmation has been made), will play a key role in this strategy.
It would start at €20,000 ($20,800) and be manufactured in Wolfsburg, which the brand stated would now become the "capital of our new all-electric compact class." It will be unveiled in March and will go on sale in Europe in 2027. It will be a model "from Europe, for Europe," meaning it's unclear whether Volkswagen has any plans for its release in North America.
The teaser presents a compact hatchback with a typical body style, boasting a sleek front end. The headlamps are linked by a prominent black horizontal outline featuring an illuminated VW logo in the center, accompanied by vertical fog lamps integrated into the bumper. Although Volkswagen did not release any technical specifications, it is logical to assume that it will be built on the modular electric drive (MEB) platform, the same underpinning numerous current ID series electric vehicles.
“We set the largest future plan in Volkswagen's history into motion," VW CEO Thomas Schäfer said. "We're pursuing an aggressive path to guarantee that we achieve our collective goals with full dedication. A fundamental step in this is making e-mobility appealing to everyone—that is our brand promise."
Before the new affordable electric vehicle becomes available for purchase, Volkswagen will first release the production model of the €25,000 ID.2all hatchback in Europe in 2026. A new-generation electric Golf will also launch at the end of the decade, built on the scalable systems platform (SSP).
The Volkswagen ID.2all is expected to be released in Europe in 2024 at approximately 25,000 euros.
Volkswagen's list of challenges is extensive and complex. The German company is encountering significant difficulties due to the increasing electrification of the car industry. Its sales have been declining, and it has struggled to compete with rapidly growing Chinese EV brands, both in Europe and in China, which is Volkswagen's largest market in terms of sales volume.
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Following strikes by its employees in Europe late last year, the carmaker has struggled to regain momentum. Moreover, its electric vehicle sales in the U.S. have been lackluster since the ID.4 production was briefly halted in mid-year to address a faulty door problem The ID.4 has now resumed sales but has a lot of ground to make up.
to design and develop electrical systems and software tools for its future electric vehicles.
If the automaker releases this new affordable electric vehicle in the U.S., it will have a real opportunity to make things turn around.
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