Volkswagen has announced its ambitious goal to begin production of the affordable ID.1 electric car, priced at around 20,000 euros ($21,700), in 2027. This move is part of the company’s commitment to providing “affordable electric mobility for everyone,” as stated by VW brand leader Thomas Shafer during the annual press conference on Thursday.
Shafer confirmed that the project, currently known as the ID.1, is already well underway. He stated, “We’re already in the middle of it, we know what the car should look like.” However, the biggest challenge lies in determining the manufacturing location for the vehicle.
“This is extremely economically challenging,” Shafer explained, citing the high battery costs. Volkswagen recognizes that mass production is essential to making the $20,000 (20,000 euro) EV a reality.
To achieve this goal, Volkswagen is considering four strategies for production location. Shafer indicated that a decision on this matter will be made soon. Additionally, VW is in discussions with Renault regarding the potential production of a small, mass-market electric car.
Volkswagen remains committed to its electric vehicle (EV) strategy, which includes the launch of 11 new VW brand models by 2027. The ID.1 will be one of these models.
The ID.1 will follow the ID.2, which was revealed last March in concept form. Described as “spacious like a Golf and affordable like a Polo,” the ID.2 concept provides a glimpse into Volkswagen’s vision for the brand’s future.
Shafer emphasized that the ID.2 concept demonstrates “where we want to take the brand.” It is based on a new entry-level version of the MEB platform and offers a range of 279 miles, starting at under $27,000 (25,000 euros). The ID.2 is scheduled for launch in 2026.
In December, Stepan Rehak, VW’s spokesperson for Design, released the first teaser of the ID.2all SUV, the larger sibling of the affordable EVs.
In the United States, Volkswagen confirmed plans to introduce a new, larger electric SUV. The brand’s presence in North America is expected to grow with the rollout of the ID.7 and ID Buzz this year. Additionally, VW has updated the ID.4 with extended range.
The announcement of the ID.1 and Volkswagen’s continued focus on expanding its electric vehicle lineup underscore the company’s commitment to sustainable mobility and innovation.