Volkswagen's project targets entry-level electric cars for €20,000 in Europe

Volkswagen Group recently announced its plans to make all-electric entry-level mobility more widespread by bringing affordable electric vehicles for the European markets by 2027. The company is said to be working on a project to offer compact, affordable electric vehicles in the price range of around €20,000. 

The automaker has claimed that the project will rely on high degree of localization in Europe, which in turn will benefit the region as an industrial location for e-mobility. Long transport routes of components and related supply chains are reduced as well, resulting in reduction of carbon emission, it added. 

Oliver Blume, CEO Volkswagen Group, commented, "Generations of people associate the strong brands of the Volkswagen Group with their first car – and with affordable mobility. As a group with strong brands, we continue to assume this social responsibility to this day". 

"That's why I'm very pleased that we're launching a future-oriented project. It's about entry-level electric mobility from Europe for Europe. 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", he claimed. 

Volkswagen Group is already working on the "Electric Urban Car Family" platform, under which electric cars for under 25,000 euros are being targeted as early as the end of 2025. Two new compact cars, one from VW and CUPRA brands, as well as two small SUVs, one each from Škoda and VW brands, are being planned. All these models will be built in Spain. 

With the latest project on all-electric entry-level mobility for €20,000, the Volkswagen Group is now taking the next, consistent step towards the enhancement of EV adoption in the mass-market passenger car segments. The group is already one of the leading makers of EVs in the segment. 

"The future is electric. In order for electromobility to become widespread, attractive vehicles are needed, especially in the entry-level segment. Our brand promise is electromobility for all. This promise is now being fulfilled in the Brand Group Core", said Thomas Schäfer, CEO of the Volkswagen brand and head of the Brand Group Core. 

Despite the attractive price, these new battery vehicles will set standards in the entry-level segment in terms of technology, design, quality, and customer experience, he noted. "This task has become more demanding due to rising energy, material, and raw material costs. One thing is clear: electromobility from Europe for Europe can only succeed with political support and competitive framework conditions", Schäfer added.