Volkswagen is reportedly set to unveil a budget-friendly electric vehicle (EV), with pricing expected to start at around $18,000. At a recent convention, Porsche’s CEO, Oliver Blume, stated that an electric vehicle priced around $22,000 (approximately 20,000 euros) could be viable by the end of this decade?
According to reports from a Berlin conference, Blume stated that declining battery prices would be the primary catalyst driving down EV costs.
Volkswagen cites progress in unified battery cells, asserting that these developments will halve the cost of batteries. Volkswagen showcased its latest breakthroughs in battery technology during its inaugural Energy Day event in 2021, marking a significant milestone in the company’s electrification strategy. The corporation mentioned that its flexibility will enable use in as many as 80% of all VW Group electric vehicle models?
The unified cells are expected to be manufactured at our facility in Salzgitter from 2025 onwards. By 2025, Volkswagen aims to scale up its battery production capacity at the plant to a substantial 40 gigawatt-hours (GWh) per year, enabling the manufacturing of approximately 500,000 electric vehicles.
“We have a duty to deliver precisely what our customers want at the right price,” Blume said on Wednesday.
Volkswagen has revealed plans for its most affordable electric vehicle (EV), the ID 2all concept, which was announced in March as a potential competitor to market leaders such as Tesla and China’s BYD. The ID. 2all is set to start at under €25,000, approximately $27,000, with a range of up to 450 kilometres (279 miles).
Volkswagen announces plans to launch a budget-friendly electric vehicle priced at approximately $22,000.
The Volkswagen Group plans to unveil the manufacturing model of the ID.2all for European markets by 2025. As part of a comprehensive overhaul, the innovative vehicle will be built on the MEB Entry platform, one of ten cutting-edge models set to debut by 2026.
Meanwhile, Volkswagen announced it’s also developing an affordable electric vehicle with a price tag under $22,000.
If the rumors prove true, the ID 1 will mark a new chapter in Volkswagen’s electric journey by introducing an affordable and compact model that bridges the gap between traditional petrol-powered vehicles and more expensive EVs. The electric vehicle is expected to match the dimensions of the gas-powered Volkswagen Polo, potentially even borrowing its name.
The new electric model of the Polo is expected to follow a similar size profile, measuring approximately 156 inches in length, 66 inches wide, and 58 inches tall.
According to the CEO of Volkswagen Passenger Automobiles, Thomas Schäfer, he previously stated: “Our iconic Polo has been highly profitable; we intend to leverage its successful concept at some point in the future.”
The ID 1 is expected to share components with the ID 2, featuring a dual option of either a 38-kilowatt-hour or 58-kilowatt-hour battery pack. For their worth, Volkswagen may offer a superior compact battery option.
At the convention on Wednesday, Blume stated, “Once early adopters of electric vehicles have been won over, our focus shifts to ensuring that all customers are satisfied with the technology, regardless of whether they have the ability to install a charging station at home.”
Volkswagen unveiled the ID.2, boasting rapid charging capabilities that enable a 10% to 80% battery refill in just 20 minutes. The corporation needs to provide further details regarding the model.
Days following Reinhard Fischer, VW Group America’s head of technique, revealed that the company aims to develop a sub-$35,000 electric vehicle for the US or Mexican markets.
Automotive manufacturers are poised to introduce affordable electric vehicles. Stellantis-owned Citroën has debuted the C3 electric city car, with a starting price tag of around $24,500 (23,300 euros). The corporation is seeking to claim the title of “The primary European reasonably priced electric vehicle.” A more affordable option is set to debut in 2025, with a price tag of approximately €19,990 ($21,000).
Renault’s subsidiary, Amphere, may be hinting at a forthcoming electric vehicle (EV), the Legend, which is expected to have starting prices under €20,000.
Electrek’s Take
A reasonably priced Volkswagen electric vehicle is finally on the horizon. As the pressure to stay competitive in the increasingly crowded electric vehicle (EV) market builds, the automaker may resort to using additional sales tactics.
Volkswagen has suspended production of electric vehicles at two German plants following a series of output reductions over recent months. The production halt is affecting electric vehicles, including the Volkswagen ID.4, ID.7, and Audi’s Fall e-tron lineup.
The corporation attributed the shortage to a lack of electrical motors. Despite a recent decline, CFO Arno Antilitz notes that electric vehicle orders have plummeted to just 150,000 units in the wake of the company’s Q3 earnings announcement. Compared to last year’s total of 300,000, there has been a 50% decline.
According to Blume, the recent surge in inflation and the expiration of subsidies are constraining demand. Meanwhile, leading electric vehicle manufacturers such as Tesla and BYD have driven down costs, prompting their competitors to follow suit.
