Thursday, April 25, 2024
NewsVW Eyes €20,000 ID.1 EV in 2027, Potential Renault Partnership

VW Eyes €20,000 ID.1 EV in 2027, Potential Renault Partnership

Volkswagen's Strategic Leap into Affordable Electrification with the ID.1

  • Volkswagen targets 2027 launch for €20,000 ID.1 EV, exploring Renault partnership.

  • ID.1 aims to expand accessible electric mobility, following the higher-priced ID.2.

  • High battery costs challenge €20,000 price goal; VW evaluating four scenarios for viability.


Volkswagen aims to launch an electric vehicle called the ID.1 with a target price of around €20,000 (CAD $29,400) in 2027, the company’s brand chief Thomas Schäfer said on Wednesday, as the German carmaker seeks to make electric mobility more accessible, according to German publication Automobilwoche.

Speaking at the company’s annual press conference, Mr. Schäfer highlighted Volkswagen’s plans to expand its electric vehicle range gradually. The launch of the ID.2 is scheduled for 2026, followed by the more accessible ID.1 a year later.

The introduction of the ID.1 could give Volkswagen a competitive edge in the European mass market. Currently, few competitors offer fully electric models in the €20,000 price bracket. By contrast, the ID.2, with a starting price of less than €25,000 ($27,700 USD), will face competition from several automakers, including Tesla.

Creating an electric vehicle at the €20,000 price point poses an economic challenge primarily due to high battery costs. Volkswagen is considering four different strategies to achieve competitive pricing, such as boosting production volumes and potentially partnering with Renault.

Despite a recent decline in electric vehicle demand following the end of purchase incentives in Germany, Volkswagen is standing firm on its electric strategy. The company plans to introduce 11 new electric models by 2027, including electric versions of popular models like the Golf, Tiguan, and T-Roc.

The reduction in subsidies in Germany has prompted Volkswagen to reduce production at its electric vehicle plants in Zwickau and Emden. Additionally, the company has decided against utilizing its Wolfsburg facility for any overflow production of the ID.3 compact car.

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