Volkswagen of Germany has announced plans to build a low-cost electric car for less than 25,000 euros ($26,400), with production set to begin in 2025. The announcement comes as the company seeks to diversify its electric vehicle portfolio and increase its market share in the EV market.
Volkswagen has struggled to compete in the electric vehicle market with Tesla and Chinese automakers, but the company has identified a market weakness that it hopes to exploit. With over 80% of customers unable to afford the market’s current electric vehicles, Volkswagen aims to provide an affordable option for consumers.
