German legacy automaker Volkswagen has just confirmed plans to introduce entry-level electric vehicles in 2027 to compete with low-cost Chinese-made models, Reuters reported.
VW targets budget-conscious buyers with new affordable EVs
On Tuesday, Volkswagen Group reportedly disclosed that it has been developing compact electric vehicles with a price point of €20,000 ($21,700).
VW announced that the new low-cost EVs will debut as early as 2027 as it seeks to target budget-conscious buyers.
The German automaker omitted from sharing more details about the new EVs. However, VW did say that the Board of Management has approved the entry-level electric mobility project.
The EV is reportedly aimed at the European market. The teaser photo reveals a futuristic hatchback that resembles a combination of the Volkswagen ID.3 and e-Up. It sports a rounded front fascia and a curved windscreen flowing into a sloping roof. It also features rounded wheel arches and a wavy rear end.
“Generations of people associate the strong brands of the Volkswagen Group with their first car – and with affordable mobility. As a group with strong brands, we continue to assume this social responsibility to this day. That’s why I’m very pleased that we’re launching a future-oriented project. It’s about entry-level electric mobility from Europe for Europe.”
Volkswagen Group CEO Oliver Blume
Meeting customers’ demand for affordable EVs
Electric vehicles remain more pricey than their internal combustion engine counterparts, especially in Western markets.
EVs must bridge this price disparity to encourage more mainstream customers to join the shift to clean mobility.
In China, EVs can cost as low as $5,000. This is no longer surprising, considering that battery-electric and plug-in hybrid vehicles already account for about 50% of total car sales.
Therefore, automakers like Volkswagen must produce mainstream EVs over the subsequent years to meet customers’ demand for affordable options. If not, Chinese players will continuously dominate the market.
“In order for electromobility to become widespread, attractive vehicles are needed, especially in the entry-level segment. Despite the attractive price, our vehicles will set standards in the entry-level segment in terms of technology, design, quality and customer experience.”
Volkswagen brand CEO Thomas Schäfer
More in the pipeline
We expect to learn more about Volkswagen’s entry-level EVs closer to their market launch.
In the meantime, Volkswagen is also developing an “Electric Urban Car Family” previewed by the ID.2all concept. It will reportedly arrive by the end of 2025.
The lineup will include a VW-branded compact car and a crossover, as well as a Skoda SUV and a Cupra car.
These four models will undergo production in Spain. More excitingly, some of them will cost below €25,000 ($27,150 / £21,277).
