Volkswagen CEO Oliver Blume announced at the Sueddeutsche Zeitung Wirtschaftsgipfel conference in Berlin on Wednesday that while the decision to produce a 20,000-euro ($21,714.00) electric car has not been finalized, he is confident that the company can achieve this milestone by the second half of the decade.
Blume emphasized that the primary mechanism for reducing the prices of electric cars is the reduction of battery costs. He pointed to Volkswagen's ambitious plans to manufacture a unified battery cell, asserting that this initiative will play a pivotal role in halving battery costs.
In March, Volkswagen outlined the details of an all-electric car currently in development, set to debut by 2025 with a price tag of 25,000 euros, a 450-kilometer range, and a rapid battery charging capability from 10% to 80% in approximately 20 minutes. While the company had previously mentioned working on a 20,000-euro vehicle, no further details were provided at that time.
Blume underlined the company's commitment to responsibly introducing products with the right features at the right price point. He acknowledged the need to extend electric vehicle adoption beyond early adopters, emphasizing the importance of convincing consumers who may lack the means to install a charging station at home.
Addressing challenges in the electric vehicle market, Blume cited factors such as inflationary pressures, insufficient charging infrastructure, and the discontinuation of subsidies as hindrances to the broader acceptance of electric cars. Despite these challenges, Volkswagen remains optimistic about overcoming these barriers to make electric vehicles more accessible to a wider consumer base.