Volkswagen is charging ahead into the electric vehicle market with the announcement of a new, affordable entry-level Volkswagen Electric Car. Set to be officially unveiled as a show car in early March, this groundbreaking model is slated for production in 2027 and aims to make electric mobility accessible to a broader audience with an attractive base price of around €20,000.
Volkswagen CEO, Thomas Schäfer, emphasized the significance of this project, stating, “An affordable, high-quality, and profitable electric Volkswagen from Europe for Europe – that’s the Champions League of automotive engineering!” This statement underscores Volkswagen’s commitment to producing competitive and accessible Volkswagen electric cars within the European market.
Adding to the excitement, Daniela Cavallo, Chairwoman of the General and Group Works Council of Volkswagen AG, highlighted the importance of this new model for the company’s workforce. “The new all-electric entry-level model will be a Volkswagen in the genuine sense of the term. It is therefore appropriate that our employees at the Wolfsburg plant will be the first to have a preview of the design – before the general public,” she noted, indicating the central role of Volkswagen’s employees in this electric transformation.
Volkswagen’s Vision for Entry-Level Electric Mobility
This new Volkswagen electric car is not just a standalone model; it’s a cornerstone of the brand’s future strategy in the electric era. It will join the production version of the ID. 2all as part of a new family of electric small cars developed under the Volkswagen Group’s Brand Group Core. These compact Volkswagen electric vehicles will be built on the next evolution of the Modular Electric Drive (MEB) platform, showcasing the company’s continuous innovation in electric vehicle technology.
The ID. 2all, which is expected to reach dealerships in 2026 with a starting price of under €25,000, will be the first in this new wave of Volkswagen electric cars. This two-pronged approach – with both the ID.2all and the even more affordable entry-level model – demonstrates Volkswagen’s ambition to dominate the electric small car segment.
Volkswagen’s existing presence in the Battery Electric Vehicle (BEV) market is already substantial. Since introducing the ID. family in 2019, the brand has sold over 1.35 million ID. vehicles globally, including approximately 500,000 ID.3 models. In the previous year alone, Volkswagen delivered 383,100 all-electric vehicles, solidifying its position as a key player in the global electric vehicle transition.
Wolfsburg: Heart of Volkswagen’s Electric Future
CEO Thomas Schäfer made it clear that the Wolfsburg plant will remain central to the Volkswagen brand in the electric age. He announced that while Golf production will be relocated to Mexico, this move is strategic, creating space in Wolfsburg for the adoption of modern technologies and new production processes in Hall 54.
“The Wolfsburg plant has a clear future ahead,” Schäfer stated. The plan is to manufacture the next-generation electric Golf and the high-volume electric T-Roc at Wolfsburg, both based on the new Scalable Systems Platform (SSP). This initiative will establish Wolfsburg as the leading production site for Volkswagen’s new all-electric compact class vehicles.
The SSP platform is a crucial element of Volkswagen’s electric strategy. It represents the next generation of a fully digitalized, highly scalable mechatronics platform designed for all-electric vehicles, built upon a uniform system architecture. Daniela Cavallo emphasized the importance of the SSP platform, stating, “Technical Development will be performing pioneering work for all the other passenger car brands with the SSP platform, which will be used throughout the Group.” She likened the SSP platform to the current platform strategy for internal combustion engine (ICE) models in terms of its importance for future success.
Cavallo further highlighted Wolfsburg’s crucial role in both development and production. She pointed out that the future electric flagships, the Golf and T-Roc produced in Wolfsburg, currently represent a volume exceeding 500,000 units per year. This secures a significant vehicle segment for the main plant and continues the legacy of the Golf from Wolfsburg, a tradition spanning over five decades. She stressed the need for meticulous preparation and collaboration between the Works Council and top management to ensure future success in this electric transition.
Volkswagen’s “Triple A” Strategy: Accelerate, Attack, and Achieve
Volkswagen’s commitment to its electric future is further solidified by the “Zukunft Volkswagen” (Future Volkswagen) agreement reached in late 2024. This agreement outlines a vision that balances economic stability, employment, and technological leadership in sustainable mobility. It sets binding targets and measures aimed at making Volkswagen Passenger Cars the globally leading technologically advanced volume manufacturer by 2030.
To achieve this ambitious goal, Volkswagen has adopted a three-stage “triple A” plan:
- Catch up: Focusing on enhancing competitiveness by optimizing cost structures and strategically expanding the existing model portfolio.
- Attack: Launching an impressive nine new models by 2027, including the ID.2all and the new entry-level Volkswagen electric car priced around €20,000.
- Lead: Establishing Volkswagen as the technological leader in the volume segment, setting new benchmarks and driving global mobility forward.
This comprehensive strategy, with the new entry-level Volkswagen electric car at its heart, positions Volkswagen to be a dominant force in the rapidly evolving electric vehicle landscape. By focusing on affordability, innovation, and strategic plant development, Volkswagen is driving towards an electric future accessible to everyone.
