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.
The new ID.2all models will have a range of up to 450 km (280 miles) and will be built on the company’s modular electric drive platform. The vehicle will also have driver-assistance technology and an infotainment system.
Volkswagen CEO Thomas Schäfer stated that the company is “rapidly and fundamentally transforming the company – with the clear goal of making Volkswagen a genuine Love Brand.” The automaker intends to introduce ten new electric models by 2026, including an electric SUV and a possible electric car priced under 20,000 euros.
The high cost of raw materials required to develop the battery makes producing an affordable electric car difficult for automakers. Volkswagen’s entry into the low-cost EV market, on the other hand, may provide consumers with a more accessible option for electric transportation.
While Tesla did not announce a low-cost Model 2 in early March, Volkswagen has seized the opportunity to provide consumers with an affordable electric vehicle. The ID.2all could be a game changer for the electric vehicle market, given the company’s extensive experience in the automotive industry and commitment to electric mobility.