Volkswagen is preparing to introduce a compact electric vehicle that could reshape the market. This evening in Düsseldorf, the German automaker will offer a first glimpse of its new model, aiming to bring electric mobility to a wider audience.
Production Planned for 2027 at an Affordable Price
VW has announced that the production version of the new electric car will launch in 2027, with a target price of around €20,000. The company is showcasing its concept, the ID.Every1, at the Congress Center in Düsseldorf, positioning it as the missing piece in its electric lineup. VW brand chief Thomas Schäfer describes it as an “affordable, high-quality, and profitable electric Volkswagen—designed in Europe, for Europe.”
Current VW Electric Cars Start at €30,000
Earlier this month, Schäfer provided a first sketch of the vehicle during a company meeting at VW’s headquarters in Wolfsburg. He emphasized that the new model is key to fulfilling the brand’s promise of “mobility for everyone.” The high cost of electric vehicles remains a major barrier for many potential buyers. This issue became even more pronounced after the German government discontinued purchase incentives at the end of 2023, leading to a sharp decline in EV sales. At present, Volkswagen’s most affordable electric model, the ID.3, is priced at nearly €30,000 after discounts.
Battery Costs Impact Profit Margins
One of the main reasons electric vehicles remain expensive is the high cost of batteries. According to Stefan Reindl from the Geislingen Institute for Automotive Economics, in larger models that already cost €60,000 to €70,000, battery expenses are less of an issue. However, SUVs and luxury sedans are not the key to reaching the mass market. Industry experts believe this is why Volkswagen’s new push into the affordable EV segment is crucial.
Production to Take Place in Europe
Due to cost considerations, VW has confirmed that the new small electric car will not be manufactured in Germany. However, the company remains committed to keeping production within Europe. The official name of the model has not yet been decided. Internally, it is referred to as ID.1, but Schäfer has repeatedly expressed his desire to preserve iconic VW names like Golf and Tiguan for the electric era, moving away from the numbered ID-series naming convention.
With this new initiative, Volkswagen aims to bring electric mobility within reach of more consumers, tackling one of the biggest challenges in the EV market—pricing.