Volkswagen Basic Electric Car will be turned to Europe

Volkswagen will concentrate in Europe the sales strategy of its € 20,000 electric car that will be launched in 2027, the brand president, Oliver Blume, said, adding that the German automaker has to reduce battery costs to sell it at that price.

The car will be the first of the Volkswagen line with Joint Venture software with the American Rivian electric vehicle manufacturer, which requires fewer electronic control units and much less wiring, reducing vehicle weight and simplifying assembly.

The Volkswagen brand is planning eight new accessible electric models by 2027, including a € 25,000 car called ID.2, which is expected to hit the market this year.

While only a few models, such as Dacia Spring or Chinese Leapmotor’s T03, exist in Europe for less than € 20,000, 11 new models at prices below € 25,000 will be sold on the continent this year, including Renault R5, Fiat Grand Panda and Hyundai Inster.

Negotiations between Renault and Volkswagen to join forces in the production of an accessible electric version of Renault Twingo failed last year, leaving Renault alone to launch the vehicle in 2026.

The Volkswagen brand is cutting capacity and costs to release funds for the development of cheaper electric vehicles while trying to protect its market share from Chinese rivals.