VW sounds the attack Volkswagen plans an entry-level electric car that is expected to cost only "around 20,000 euros"

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During a staff meeting, Thomas Schäfer, CEO of the Volkswagen brand, discussed the brand's development plans and introduced an entry-level electric car model, which is expected to have a base price of just around 20,000 euros (20.874 USD). The car will be officially presented in March 2025.

The CEO of Volkswagen, Thomas Schäfer, presented an entry-level electric model of the brand during a company meeting on February 5, 2025, with an estimated base price that will make potential customers' hearts beat faster. The entry-level electric model from VW is expected to cost around "20,000 euros" in its basic version, as Schäfer announced. The model is set to be unveiled to the public in early March 2025, with the series version presentation to follow in 2027. Schäfer stated: "An affordable, high-quality, profitable E-Volkswagen from Europe for Europe: That is the Champions League of automotive manufacturing!"

In addition to the entry-level model, the ID. 2all, another fully electric compact car, will hit the market starting in 2026, offered at an entry price of under 25,000 euros (26.092,50USD). With this future orientation, Volkswagen executives, who have experienced several turbulent months of announced job cuts, are clearly committed to the Wolfsburg (Germany) location. "The Wolfsburg plant has a clear future perspective. By relocating the Golf to Mexico, we are creating space for modern technologies. New production methods will be introduced in Hall 54. We aim to build the electric Golf successor on the new SSP platform there, as well as the high-volume electric T-Roc. This will make Wolfsburg the capital for our new fully electric compact class," Schäfer stated.

Dream big, go small

By doing so, Volkswagen deliberately chooses to develop slightly against the actual and 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, according to the saying "bigger is better," has strongly leaned towards SUVs and other large cars in recent times.

Small car series, whether with combustion engines or electric drivetrains, are now being produced less frequently or even completely discontinued by automakers, despite the high demand. The profit is lower with small models, but given unavoidable facts like space shortages in many large cities, most drivers cannot and do not want to afford a large vehicle. Having a car available still seems appealing to many—an opportunity for the Volkswagen Group, which has run into turbulence. With an electric vehicle offering with compact dimensions in lower price ranges, VW should theoretically have a good offer.

The plan of the Volkswagen management envisions that by the year 2030, Volkswagen Passenger Cars will become a globally technologically leading volume manufacturer. 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 come by 2027, including the production version of the ID. 2all for under 25,000 euros and the entry-level electric car for around 20,000 euros.

• Lead: Volkswagen sets new standards as a technologically leading brand in the volume segment and drives mobility forward worldwide.

 (sb)