VW

The fact that one of the largest carmakers on the planet is having to resort to such measures is indicative of how dire the situation is.

Volkswagen Group has been contemplating a €20,000 EV for quite some time now. VW has finally announced that its affordable €20,000 ($21,680 as per current exchange rates) entry-level EV will debut in 2027. The Wolfsburg-based auto giant has been working relentlessly on an inexpensive electric car to cater to the masses for a long time now. That is in line with its promise to create mobility for all in the upcoming electrified world. While not many details are available at the moment, we can assume the working title to be ID.1 for the moment. You might also like: VW CEO Says PHEVs Are Necessary Transitional Technology VW Announces Entry-Level EV For 2027 The official press release from Volkswagen Group mentions that in order to achieve the ambitious target of offering an EV for €20,000, a “high degree of localization” is needed. This model will initially be for the European market only. A key advantage of that is the reduction of long transport routes, which consequently minimizes CO2 pollution. Once the customers embrace it, we might witness it moving to other parts of the world. During this announcement, Volkswagen Group even released a teaser image of the silhouette of this entry-level EV. Albeit not much could be deduced from the image, it evidently bears a crossover body type. On top of that, one could even recognize the tall-boy stance with a short wheelbase. The wheel arches are quite well-pronounced. The rear section showcases a roof-mounted spoiler. The ID.2 SUV (slated to debut in 2026) inspiration is vivid. Management Comments On this momentous occasion, Oliver Blume, CEO Volkswagen Group said, “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. 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.” The CEO of the Volkswagen brand and head of the Brand Group Core, Thomas Schäfer remarked, “The future is electric. In order for electromobility to become widespread, attractive vehicles are needed, especially in the entry-level segment. Our brand promise is: electromobility for all. This promise is now being fulfilled in the Brand Group Core. Despite the attractive price, our vehicles will set standards in the entry-level segment in terms of technology, design, quality, and customer experience. This task has become more demanding due to rising energy, material, and raw material costs. One thing is clear: electromobility from Europe for Europe can only succeed with political support and competitive framework conditions.” You might also like: Hyundai Ioniq 7 Electric SUV Spied Testing Ahead of June 27 Debut Learn Electric Cars Says Affordable electric cars are what all major carmakers are heading toward. Due to the exorbitant prices of EV batteries in the last few years, it was almost impossible to offer a comparable vehicle at a price point in the vicinity of the ICE car. But with time, the battery costs have come down. The other enormous issue preventing mass adoption is range anxiety due to the lack of charging infrastructure. That is also being addressed by various governments around the world. Finally, the initial wave seemed to have plateaued, at least in the big markets like the U.S., China and the EU. Going forward, only low-cost EVs will be able to spur demand and generate traction and sales. Hence, most legacy carmakers are aiming for that enticing under-$25,000 price point. Once that becomes widespread and charging infrastructure catches up, we are bound to have more EVs on the roads.