Volkswagen aims to produce affordable €20,000 EVs by 2027

Europe's carmakers face immense pressure to revamp their lineups amidst slow economic growth and declining EV subsidies. Volkswagen, a key player in the market, plans to launch these affordable compact EVs by 2027.

"Despite the attractive price, our electric cars will set standards in the entry-level segment in terms of technology, design, quality, and customer experience," Thomas Schäfer, head of Volkswagen's volume brands, stated.

Volkswagen has experienced several setbacks in its EV development, including prolonged software issues. These challenges have delayed key models and caused frustration among drivers. In China, Volkswagen's combustion-engine vehicles perform well, but its EVs lag behind local brands due to a lack of appeal to local tastes.

Renault SA, on the other hand, has explored potential partnerships for affordable EV production but has not finalized any collaborations. In contrast, Stellantis NV will start selling cars co-developed with a Chinese partner in Europe from September.

In its initial push towards more affordable EVs, Volkswagen plans to introduce four battery-powered vehicles priced below €25,000 by the end of next year. These vehicles will be built in Spain.

Volkswagen's €20,000 EV project will rely heavily on localization within Europe, requiring political support and a competitive framework. This strategic move is part of Volkswagen's effort to maintain its position in the market and address the growing competition from Chinese brands like BYD Co., which plans to offer its Seagull hatchback next year for under €20,000.

Source: Europe