Volkswagen to Develop Low-Cost Electric Vehicle, priced around 20k, to Compete with Chinese Rivals

VW Golf 8.5 2024

Volkswagen AG, Europe’s largest automaker, announced plans to develop a low-cost electric vehicle (EV) to compete with Chinese manufacturers. This decision follows the collapse of partnership talks with Renault, as reported by Reuters.

Volkswagen aims to produce an EV priced around €20,000 ($21,746), with a global debut planned for 2027. “This is about entry-level electric mobility in Europe, for Europe. To this end, we are combining a clear commitment to Europe as an industrial location, a European industrial policy, and ultimately acting in the interest of European customers,” said Volkswagen CEO Oliver Blume.

Despite the low price, the new model will set standards in technology, design, and quality, according to Volkswagen brand chief Thomas Schaefer.

Last week, Renault CEO Luca de Meo confirmed the end of discussions with Volkswagen to jointly develop an affordable electric version of the Twingo. “We also wanted to show that the European industry can work together as a team, and I think this is a missed opportunity, but others may arise,” de Meo stated, acknowledging the potential benefits of cost-sharing to address challenges posed by cheaper Chinese imports.

The competition in the low-cost EV market is heating up. Stellantis recently unveiled the new Citroen e-C3, a low-cost EV priced from €23,300 ($24,540). Produced in Slovakia, the Citroen e-C3 is designed to compete with affordable Chinese EV models like the Dacia Spring, which is assembled in China.

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