German legacy automaker Volkswagen continues to explore potential partnerships for the development of its planned €20,000€20,000 electric car. According to local news platform Handelsblatt, people familiar with the matter disclosed that French rival Renault is currently one of the candidates for the low-cost EV project.
Report highlights
European electric automakers are persisting to bring a true low-cost offering to the region. Excitingly, a potential collaboration between VW and Renault may successfully launch the highly demanded €20,000 EV.
The local report indicated that VW targets an annual production output of 200,000 to 250,000 units for the planned affordable model. Unnamed sources further claimed that the German automaker is seeking a partner for the development of a new vehicle platform that can support the production of mass-market EVs.
However, it must be noted that the discussions remain at a “very early stage.” That said, there is still no certainty about the insiders’ report.
Nonetheless, Renault remarked that cooperation on entry-level models was “necessary to be competitive.”
“We are in different discussions but nothing has been finalised.”
Renault spokesperson (via Reuters)
Race for affordable EV
Electric automakers with a presence in the European market continue to race toward affordable entry-level EVs amid the intensifying price war initiated by American leader Tesla.
Tesla is already developing its promised “low-cost” electric car with a base price of about $25,000. South Korean automaker Kia is also seeking to penetrate the entry-level EV market. According to Electrek, it recently launched the Kia EV5 in China for a base price of about $20,000 (149,800 yuan).
Renault also introduced the new Legend, which it claims to be the Twingo e-Tech successor. The automaker aims to price the model below 20,000 euros ($21,500).
VW introduces the ID2all
Volkswagen unveiled an entry-level model concept in March named ID 2all. It is apparently as spacious as the Golf and as affordable as the Polo model.
VW brand CEO Thomas Shafer noted that the ID 2all concept is “where we want to take the brand.” The automaker expects the production model to cost about 25,000 euros ($27,000).
Sitting below the VW ID.3, the ID 2all concept offers a WLTP-estimated driving range of 280 miles (450 km). It will ride on the entry-level MEB platform with FWD.
Several reports further claim that the German automaker is developing a more affordable model at €20,000, referred to as the ID.1, which may feature 38 or 58 kWh battery packs like the ID 2all. Excitingly, VW expects the ID 2all to join the ten new models it plans to launch in the next three years.
