Volkswagen Group has said it is launching a project to bring affordable EVs into the European market.
The project, dubbed ‘ID.1’, will bring electric cars priced in the range of around €20k, with a world premiere planned for 2027.
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Oliver Blume, CEO Volkswagen Group said: “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.”
Volkswagen’s tagline “From Europe, for Europe” echoes Chinese smart EV maker Nio’s tagline from earlier this year, when it opened its Smart Driving Technology Centre opening, outside of Berlin.
Thomas Schäfer, CEO of the Volkswagen brand and head of the Brand Group Core: “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.”
For the ID.1 project, Volkswagen said it is going to rely on a high degree of localisation in Europe.
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By GlobalDataIntensive work is already under way on the “Electric Urban Car Family”, with which the Brand Group Core will present electric cars for under €25,000 as early as the end of 2025.
Two new compact cars, one from VW and one from CUPRA, as well as two small SUVs, one each from Škoda and one from VW, are planned here.
All four vehicles will be built in Spain.
Until recently, Volkswagen was in talks with Renault on a possible collaboration for a low-cost electric car, but those talks ended without agreement.
China competitive threat to Europe’s auto industry
VW’s move comes as Chinese rivals, some of which command a 30% cost advantage over Western peers in BEVs, “are muscling into Europe to grab market share and attack established carmakers on their home turf”, the firm said.
Last year Stellantis, the world’s third-largest automaker, unveiled its answer to what its CEO Carlos Tavares called the “Chinese invasion”, the “affordable” Citroën e-C3, starting from €19,990, with an EU launch planned for 2025.
Stellantis and Chinese EV maker Leapmotor recently finalised their 51/49 JV (Leapmotor International), which will see exports to nine EU countries beginning in September this year.
See also: Stellantis’ Tavares and his delicate Leapmotor balancing act
