Volkswagen on Tuesday announced its goal of launching an electric vehicle priced at 20,000 euros — or $22,000 at current exchange rates — by 2027.
VW said in a press release that the affordable electric vehicle is aimed at the European market, with a high level of production and supply chain localization in the project. The automaker notes that this will allow for shorter component shipping routes, helping to reduce the overall carbon footprint of the vehicles produced.
“It’s about entry-level electric mobility from Europe to Europe,” Volkswagen Group CEO Oliver Blume said in a statement. “In doing so, we combine a clear commitment to Europe as an industrial location, a European industrial policy and ultimately act in the interests of European customers.”
Trailer of $22,000 Volkswagen EV for the European market launching in 2027
Euro-centric rhetoric suggests that the project could be a response to the influx of Chinese-branded electric vehicles into the European market. France in 2023 announced it would exclude China in EV incentives to help stop the flow.
It will take some heavy lifting to set up a battery manufacturing facility in Europe. Meanwhile, China currently produces enough batteries to provides all EV products globallyaccording to recent estimates from Bloomberg New Energy Finance.
In U.S.A, The Biden administration has increased taxes, effective later this summer, to phase out China’s electric vehicles. That may help protect manufacturers but may not be popular with consumers. Last week, survey results showed that young drivers in the US are Be more open to Chinese electric vehicles. However, unlike Europe, there are currently no Chinese brands selling electric vehicles in the US
Production of Volkswagen ID 3 2020 at the aircraft in Zwickau, Germany
The $22,000 electric vehicle project is just one of VW’s many efforts to produce more affordable electric vehicles. The automaker has also embarked on a project under $35,000 for North Americawill also arrive in the 2027 timeframe.
In Europe, VW also plans an “Urban Electric Vehicle Family” with four electric car models priced under 25,000 euros ($27,000) launching by 2025. These four models include compact cars of the main brands VW and Cupra, as well as small SUVs from VW and Škoda. All four models will be produced in Spain.
