Volkswagen is gearing up to unveil its most affordable electric vehicle (EV) yet, aimed at undercutting budget-friendly rivals from China and the new Citroen e-C3. Teased in a single image, the upcoming EV, expected to be called the ID.1, is a spiritual successor to the now-discontinued Up city car.
Targeting Affordability
Set for production in 2027, Volkswagen is targeting a starting price of around €20,000 ($33,160 AUD) for the new EV. This aims to position it competitively against cheaper Chinese EVs and other budget electric options in the European market. In comparison, the larger, combustion engine-powered Polo hatchback was priced from €21,590 ($35,800 AUD) in Germany.
"Champions League" EV
Volkswagen CEO Thomas Schäfer emphasized the importance of this new EV, stating that it will be “an affordable, high-quality, profitable electric Volkswagen from Europe for Europe.” He added, "This is the Champions League of automobile manufacturing."
Design and Production
The teaser image reveals a hatchback body with a short bonnet and an upright roofline. While the Volkswagen Group is producing many of its new affordable EVs in Spain, the ID.1 was previewed at its main Wolfsburg plant.
“The new all-electric entry-level model will be a Volkswagen in the genuine sense of the term,” said Daniela Cavallo, Volkswagen chairperson of the General and Group Works Council. “It is therefore appropriate that our employees at the Wolfsburg plant will be the first to have a preview of the design – before the general public.”
Positioning in VW's EV Lineup
The ID.1 will slot below the production version of the ID.2all, a sub-Golf-sized electric hatchback due to launch in Europe next year with a higher targeted base price of €25,000 ($41,450 AUD).
These two affordable EVs will launch at a crucial time for Volkswagen as the European market becomes increasingly competitive due to the influx of affordable Chinese EVs from brands like BYD, GWM, and MG.
Cost-Cutting Measures
Volkswagen is also implementing cost-cutting measures in Europe, including a “socially responsible reduction in the workforce” that will lead to over 35,000 job cuts by 2030, saving an estimated €1.5 billion (A$2.5 billion) in labor costs annually.
The announcement of the affordable ID.1 signals Volkswagen's determination to compete in the rapidly evolving EV market. By targeting a competitive price point and emphasizing European manufacturing, Volkswagen aims to win over budget-conscious buyers and fend off competition from Chinese automakers. The success of the ID.1 will be crucial in shaping Volkswagen's future in the electric era.
