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Volkswagen Group announces plans to advance EV industry by rolling out affordable new model: 'The future is electric'

It says the move is part of a "promise to create mobility for all and continue to facilitate the entry into e-mobility."

It says the move is part of a "promise to create mobility for all and continue to facilitate the entry into e-mobility."

Photo Credit: iStock

Volkswagen Group has announced plans to roll out an entry-level electric vehicle to the European market.

The automaker said the car, which is expected to sell for around €20,000 (for reference, this is just under $22,000), is set for a 2027 rollout. It says the move is part of a "promise to create mobility for all and continue to facilitate the entry into e-mobility." 

Although average sticker prices for EVs have fallen significantly, they are still generally a few thousand dollars more expensive than their gas-fueled counterparts, according to a report from Cox Automotive. 

Moves like this by Volkswagen are set to make EVs more affordable than ever, which is great news for consumers. EVs are much cheaper to fuel than gas-powered vehicles — one report found that EVs cost about $485 per year to fuel, while traditional cars cost over twice that at $1,117. Of course, the study utilized U.S. data, but the same idea holds true in Europe, as EVs are generally cheaper to fuel there as well.

Swapping out gas-powered cars for electric ones can also significantly impact the air we breathe, as pollution from our city streets contributes to a number of health conditions. 

According to a report from the U.S. Environmental Protection Agency, people who live, work, or go to school near major roads suffer higher rates of asthma onset and aggravation, cardiovascular disease, and impaired lung development in children, among other health problems. Meanwhile, EVs release no tailpipe pollution.

Plus, dirty energy sources like gas, oil, and coal account for more than 75% of all planet-heating pollution. As our climate begins to spin more dangerously out of control, the United Nations warns of severe consequences, including hotter temperatures, increased drought, more severe storms, loss of species, food shortages, poverty and displacement, and the spread of certain diseases. 

Volkswagen is one of many automakers to aim to make EV ownership more affordable. In late 2023, Chinese company BYD announced the most inexpensive EV ever. Dubbed the "Seagull," it cost just over $10,000 following its public release in mid-2023.

Meanwhile, in the U.S., Tesla slashed prices on a number of models, including its Model Y, in 2023. The company's price cuts spurred other automakers like Ford to follow suit by reducing the price of its Mustang EV by $6,000.

As for Volkswagen's upcoming EV, "It's about entry-level electric mobility from Europe for Europe," Oliver Blume, CEO of Volkswagen Group, said in a statement.

Thomas Schäfer, CEO of the Volkswagen brand and head of the Brand Group Core, added: "The future is electric. In order for electromobility to become widespread, attractive vehicles are needed, especially in the entry-level segment."

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