DUESSELDORF, March 5 (Reuters) – Volkswagen will concentrate its sales strategy for the upcoming €20,000 ($21,580.00) electric car, set to be released in 2027, in Europe, according to the brand’s chief. The carmaker needs this time to reduce battery costs to be able to sell the car at that price point.
The new vehicle will be the first in Volkswagen’s line-up to incorporate software developed in the joint venture with U.S.-based EV maker Rivian. This software requires fewer electronic control units and significantly reduces wiring, leading to a lower vehicle weight and simpler manufacturing processes.
The Volkswagen brand has plans for eight new affordable electric models by 2027. These include a €25,000 model named the ID.2, with a market launch expected this year.
Currently, only a limited number of models sell in Europe for under €20,000, such as the Dacia Spring and Leapmotor’s T03. However, eleven new models priced under €25,000 will be available in Europe this year. These include the Renault R5, the Fiat Grand Panda, and the Hyundai Inster.
Negotiations between Renault and Volkswagen to collaborate on the production of an affordable electric version of Renault’s Twingo ended last year. This means Renault will proceed to launch the vehicle independently in 2026.
The plan for Volkswagen is to cut production capacity and reduce costs. This will help free up finances for investments in the production of cheaper EV models, as the company attempts to protect its market share from competition from Chinese rivals.
($1 = 0.9268 euros)
