In the early 1970s, as skyrocketing oil prices dampened consumer appetite for gas-fueled cars, Volkswagen decided to invest in a groundbreaking battery system for its first electric concept vehicle known as the Elektro Bus.
Now, facing a significant decline in sales in both Europe and China, the German automotive manufacturer is setting its sights back on affordable electric vehicles as a potential savior.
According to Volkswagen brand chief Thomas Schaefer, as reported by German media, the company aims to introduce eight new budget-friendly electric models by the year 2027.
“We must make our vehicles financially viable while ensuring they’re priced affordably for consumers,” he noted.
One of the anticipated models is the ID.2all hatchback, which is now being developed on an accelerated timeline of 36 months, down from the previous period of 50 months. Just last year, VW unveiled the ID.2all concept and aims to sell it for under 25,000 euros (approximately $27,000) with a release expected in 2025.
Additionally, VW CEO Larry Blume has suggested that a model priced below $22,000 could debut post-2025.
Details regarding which models will be available in the United States remain uncertain. Last year, VW of America indicated plans to roll out an electric vehicle priced under $35,000 by 2027.
The cost of batteries continues to be one of the primary challenges in reducing production expenses for EVs and consequently lowering retail costs. VW is working on a unified battery cell to be manufactured across several plants in Europe, as well as in Ontario, Canada.
To qualify for the Inflation Reduction Act’s $7,500 tax credit for EV purchases, both the vehicle and its components—including batteries—must be partially produced domestically (at least in part).
Volkswagen already operates a facility in Chattanooga, Tennessee, and has plans for a new plant in South Carolina. However, it remains unclear whether the new unified battery cells will be produced or assembled at these locations.