Volkswagen plans entry-level electric car that should cost "around 20,000 euros"

VW sounds the attack Volkswagen plans entry-level electric car that should cost "around 20,000 euros"

2025-02-11 From Susanne Braun | Translated by AI 2 min Reading Time

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During a works meeting, Thomas Schäfer, CEO of the Volkswagen brand, discussed the brand's development plans and presented an entry-level electric car model that is expected to cost just around 20,000 euros (21,400 US Dollars) as a base price. The car will be officially unveiled in March 2025.

In addition to the ID. 2all, VW plans to offer another compact small electric vehicle with a base price of around 20,000 euros (21,400 US Dollars).(Image: Volkswagen AG) — In addition to the ID. 2all, VW plans to offer another compact small electric vehicle with a base price of around 20,000 euros (21,400 US Dollars).
(Image: Volkswagen AG)

The CEO of Volkswagen, Thomas Schäfer, presented an entry-level electric model of the brand at a staff meeting on February 5, 2025, whose estimated base price is sure to set potential customers' hearts racing. The entry-level VW electric model is said to cost "around 20,000 euros (21,400 US Dollars)" in the basic version, Schäfer announced. The model is to be presented to the public at the beginning of March 2025, with the production version being unveiled in 2027. Schäfer commented: "An affordable, high-quality, profitable E-Volkswagen from Europe for Europe: That is the Champions League of automotive engineering!"

In addition to the entry-level model, the ID. 2all, another all-electric small car, will also hit the market starting in 2026, offered at an entry price of under 25,000 euros (26,750 US dollars). With this future orientation, Volkswagen's decision-makers, who have had a few turbulent months of announced job cuts, are clearly committing to the Wolfsburg location (Germany). "The Wolfsburg plant has a clear future perspective. By relocating the Golf to Mexico, we are creating space for modern technologies. We intend to build the electric Golf successor on the new SSP platform there, as well as the volume-strong electric T-Roc. This makes Wolfsburg (Germany) the capital for our new all-electric compact class," Schäfer stated.

Dream big, go small

With this decision, Volkswagen deliberately chooses to develop somewhat contrary to the current widespread trend and to cater to a customer base that has been quite neglected by automakers in recent years. It's no secret that the trend in recent times, following the motto "bigger is better," has strongly leaned toward SUVs and other large vehicles.

Small car series, whether with combustion engines or electric drivetrains, are now being produced less frequently or even discontinued altogether by car manufacturers, despite high demand. The profit is lower with small models, but given unavoidable facts such as space scarcity in many large cities, most drivers cannot or do not want to afford a large vehicle. Having a car still seems appealing to many—a chance for the Volkswagen Group amid its turbulence. With an electric vehicle offering compact dimensions in lower price ranges, VW should theoretically have a good offering.

The Volkswagen management plan envisions that by 2030, Volkswagen Passenger Cars will become a globally leading volume manufacturer in terms of technology. This is reflected in the communicated three-phase plan:

Catch up: Strengthen competitiveness by optimizing cost structures and strategically expanding the existing model range.
Attack: Nine new models will be launched by 2027, including the production version of the ID. 2all for under 25,000 euros (26,750 US dollars) and the entry-level electric car for around 20,000 euros (21,400 US dollars).
Lead: Volkswagen sets new standards as a technologically leading brand in the volume segment and drives mobility forward worldwide.

(sb)

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Date: 08.12.2025

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