European automakers are striving to produce affordably priced electric vehicles (EVs) in a bid to boost demand. The most recent options could also include a 20,000-euro ($21,500), eco-friendly electric vehicle (EV) from renowned manufacturers like Volkswagen and Renault.
Volkswagen is seeking partners to develop a mass-market electric vehicle (EV) priced under €20,000 (approximately $22,300).
According to a recent report from a leading German publication, the automotive manufacturer is poised to deliver a projected 200,000 to 250,000 units annually.
Sources familiar with the situation suggest that Volkswagen has initiated discussions regarding the development of a new platform for their automotive division.
Volkswagen aims to boost electric vehicle adoption with a competitively priced offering. Despite this, discussions with Renault remain at a very early stage. Volkswagen had no influence on the partnership with Renault.
Renault’s representative underscored the importance of partnering on affordable electric vehicles to remain competitively assertive in the market. “We’re currently engaged in multiple conversations, but no agreements have been reached yet.”
Several major automakers have announced plans to introduce affordably priced electric vehicles. As the electric vehicle (EV) market continues to surge globally, traditional automakers such as Volkswagen (VW) and Renault are facing increased pressure from Chinese-language EV manufacturers like BYD and SAIC’s MG in both European and international markets.
Volkswagen and Renault are reportedly considering a jointly developed affordable electric vehicle model.
Tesla is working on a revolutionary new electric vehicle designed to offer affordable luxury mobility. Kia is another company striving to enter the entry-level electric vehicle market. South Korean automaker Hyundai unveiled a range of affordable electric models during its annual EV day, with prices starting at around $30,000.
The model recently introduced its EV5 to the Chinese market, with a starting price of around $20,000 or 149,800 yuan.
Renault has unveiled the successor to its popular Twingo e-Tech, now rebranded as the Legend. The new electric car is expected to start at around 18,000-19,000 euros ($19,300-$20,700).
Meanwhile, Volkswagen has announced plans to introduce an entry-level electric vehicle (EV) under its own brand in March. The ID.2all is as spacious as the Volkswagen Golf and affordable like the Polo. Volkswagen’s CEO, Thomas Schäfer, has emphasized the need for a new concept in the company’s iconic VW model, anticipating costs around €25,000 (approximately $27,000).
Will innovative concepts nest comfortably under the identification marker? With a projected range of approximately 280 miles (450 km), according to the Worldwide Harmonised Light Vehicle Test Procedure (WLTP). The upcoming model will predominantly rely on a novel entry-level MEB (Modular Electric Architecture) platform featuring front-wheel drive capabilities.
According to sources, Volkswagen is developing a competitively priced electric vehicle, the ID 1, with a starting price of around €20,000. The ID.4 will likely share components with the ID.2all, offering 38 or 58 kWh battery options. The entry-level ID.2all is expected to be just one of the ten new Volkswagen EVs set to hit the market within the next three years.
Electrek’s Take
As Europe’s biggest automaker, Volkswagen faces mounting pressure from the likes of Tesla and affordable electric vehicles such as BYD’s Dolphin, priced competitively at around £25,000 ($33,000) in the UK.
The Polestar 2 starts at around $47,000, a significant $11,500 less than the Volkswagen ID 3, which begins at $58,000 (£46,500). At a recent convention, VW CEO Oliver Blume declared that a €20,000 ($21,500) electric vehicle is a realistic possibility by the end of this decade.
According to Blume, a significant decline in battery value was the primary factor driving this trend. Advances in unified battery cell technology are expected to significantly reduce battery costs by up to 50%, which is currently the most expensive component of electric vehicles (EVs).
Despite current indications, a revival of these trends is unlikely to occur before 2025 at the earliest. By that point, Volkswagen was rapidly falling further behind.
