Volkswagen plans to launch a low-priced EV for 20,000 euros in 2027

This is expected to be the lowest-priced EV among Volkswagen products. Chinese companies entering the European market are launching EVs below 20,000 euros.

On February 5, Volkswagen (VW), a large German automobile manufacturer, released the renderings of a pure electric vehicle (EV) priced at about 20,000 euros (about 150,000 yuan) within the company. It will be launched in 2027. This is expected to be the lowest-priced EV among Volkswagen products, and it will compete with Chinese emerging companies that are leading in the field of low-priced EVs.

Volkswagen showed the renderings of the low-priced model to employees of the Volkswagen Passenger Cars brand at its headquarters in Wolfsburg in northern Germany. The model is a hatchback model and is the lowest-priced model in the brand’s flagship EV series. It is temporarily named “ID.1”.

The low-priced model will be produced at the headquarters factory. In December 2024, Volkswagen’s labor and management reached an agreement to stop the operation of two factories in Germany in the future in order to reduce costs. This announcement of the launch of new models is to share goals with employees. Volkswagen plans to launch a small EV “ID.2all” priced below 25,000 euros, but the original plan to launch it in 2025 has been postponed by one year.

The performance of the new model has not been disclosed.

For European car companies, a price of 20,000 euros is the goal in the field of small EVs. The small EV “Twingo” to be launched by French Renault in 2026 is expected to be priced below 20,000 euros.

The reason why each company set the goal at 20,000 euros is that Chinese companies entering the European market are launching EVs below 20,000 euros. BYD (BYD) announced that it will launch a mini EV priced below 20,000 euros for Europe. It will also launch a hatchback “Seagull” worth nearly $10,000 in 2025.

The price of the EV of Zhejiang Zero Electric Technology, a Chinese start-up company, which European car manufacturer Stellantis will sell in Europe from 2024, also starts at 19,000 euros. In 2027, when Volkswagen is expected to launch a low-priced model, the number of competing models will increase further. Therefore, it is important for the company to highlight features other than price.