Summary
– Volkswagen plans to launch an EV priced at 20,000 euros in 2027 for the European market, with a focus on manufacturing and supply-chain localization to lower carbon footprint
– VW CEO Oliver Blume emphasized the commitment to Europe with this affordable EV project
– The project is seen as a reaction to an increase in Chinese-branded EVs entering the European market
– Volkswagen also has plans for a sub-$35,000 EV for North America in 2027
– Additionally, VW is working on an “Electric Urban Car Family” with four EVs priced under 25,000 euros to debut in 2025 in Europe built in Spain.
Article
Volkswagen has announced its goal of launching an electric vehicle priced at 20,000 euros or $22,000 in 2027 for the European market. The company plans to heavily localize manufacturing and supply chain to reduce the carbon footprint of the vehicles produced. Volkswagen Group CEO Oliver Blume stated that this initiative is about entry-level electric mobility from Europe for Europe, highlighting a commitment to European industrial policy and customers.
The decision to introduce a $22,000 EV for Europe in 2027 may be a response to the increasing presence of Chinese-branded EVs in the European market. France announced in 2023 that it would exclude China from its EV incentives to address this issue. Establishing a battery-manufacturing base in Europe will require significant effort, as China currently produces enough batteries to meet global EV production needs. The U.S. government has also raised tariffs to restrict Chinese EVs from entering the market, although younger U.S. drivers appear more open to Chinese EVs.
Volkswagen’s $22,000 EV project is part of the company’s larger efforts to make electric vehicles more affordable. In addition to the European market, Volkswagen is working on a sub-$35,000 EV for North America that is expected to launch around the same time in 2027. The company also plans to introduce an “Electric Urban Car Family” in Europe, with four EV models priced under 25,000 euros ($27,000) set to debut in 2025. These models will include compact cars from VW and Cupra, as well as small SUVs from VW and Škoda, all to be manufactured in Spain.
The localization of manufacturing and supply chains for Volkswagen’s affordable EVs is aimed at reducing transportation routes for components and decreasing overall carbon emissions. By focusing on European markets with entry-level electric mobility options, Volkswagen is aligning with European industrial policies and catering to the preferences of European customers. The company’s broader strategy includes initiatives to make electric vehicles more accessible across different regions, including Europe and North America.
While China currently dominates global battery production for EVs and has a strong presence in the European market, Volkswagen’s push to offer affordable EVs in Europe signals a competitive effort to target environmentally conscious consumers in the region. The company’s plans for a range of affordable electric models, including compact cars and small SUVs, reflect a commitment to expanding its electric vehicle offerings and capturing market share in the rapidly evolving EV industry. As governments and consumers worldwide emphasize sustainability and electric mobility, Volkswagen’s initiatives to produce affordable EVs demonstrate a strategic response to market demands and environmental concerns.
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