Volkswagen plans to launch a new compact EV in Europe in 2027, with a starting price of about €20,000, or $22,298.
Priced beneath the brand's lower-cost ID Polo, it would give Volkswagen another option for EV buyers focused on affordability, according to Electrek.
Here's what to know
The company has been using the ID EVERY1 concept to signal where its cheapest EV is headed.
Sized like a city hatchback and positioned below the ID Polo on both dimensions and cost, it belongs to Volkswagen's "electric urban car family," which, as Electrek reported, is intended to strengthen the automaker's response to Chinese brands including BYD.
Before this new arrival, that family consisted of the ID Polo and ID Cross alongside the Cupra Raval and Skoda Epiq, all riding on the same MEB+ platform.
Base versions of the ID Polo and ID Cross cost €24,995 ($27,866) and €27,995 ($31,211), and the upcoming model is intended to bring that minimum down.
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At 152.8 inches long, the vehicle slots between the former Up! at 141.7 inches and the ID Polo at 159.6 inches. Volkswagen says the compact footprint still allows room for four people plus 80.6 gallons of cargo space.
While full production specs remain unreleased, Volkswagen has said the car should deliver at least 155 miles of range, use a 70-kilowatt electric motor, and reach 80 mph.
More background
In Volkswagen's strategy, the model is a way to counter cheaper Chinese EV brands, particularly in the small-car market, where pricing often decides the winner.
Volkswagen may keep costs down by giving the €20,000 car the same 37-kilowatt-hour LFP pack found in base versions of the ID Polo and ID Cross.
That battery is rated for up to 207 miles in the ID Polo, so the smaller model can deliver a comparable result.
Low-priced EVs affect both purchase prices and the ongoing cost of ownership. Electric vehicles save drivers money on fuel and require less routine maintenance than gas-powered cars, which could make the category more attainable for many households.
The production version could appeal to shoppers already thinking about making their next car an EV.
What's being done?
Volkswagen is pushing to grow its presence with smaller, more affordable battery-powered vehicles.
Spain appears to be the likely manufacturing base for the new EV.
Electrek, citing Spanish auto magazine Autofácil, said Volkswagen could produce the €20,000 model there, though the automaker has not named a factory. Martorell builds the ID Polo and Cupra Raval, while Navarra builds the ID Cross and Skoda Epiq.
Charging an EV at home often costs half as much as using public chargers, but basic Level 1 charging tends to be slow. Qmerit provides free, instant installation estimates for faster Level 2 home charger installations.
The company already followed through on its pledge to price the ID Polo below €25,000 ($27,872) by launching the 37 kWh base model there, giving observers a reference point as Volkswagen targets the even lower €20,000 mark.
VW brand CEO Thomas Schäfer called the model "the last piece of the puzzle."
Where can I learn more?
For a closer look at Volkswagen's cheaper-EV push, these stories break down the battery and factory decisions behind it. They also examine how lower-cost Chinese EVs are pushing European brands downmarket.
• In Spain, Volkswagen's first low-cost EVs are already rolling off the line.
• BYD's unbelievably affordable EV may soon expand from China into Australia.
• Across Europe, automakers are shrinking their EVs to counter cheaper Chinese rivals.
• At BYD, battery tech could slash costs for the next generation of EVs.
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