Volkswagen is gearing up to unveil an entry-level electric vehicle priced at €20,000 ($21,000) in March 2025, marking a significant milestone in the automaker’s push to offer more affordable electric vehicles. While the public debut is just around the corner, the production version of this new model won’t hit the market until 2027.
Key Information About the New EV
Pricing and Availability: Volkswagen’s upcoming entry-level electric vehicle will have a starting price of $21,000. The model will be officially revealed to the public in early March 2025, but the first production units are not expected to reach dealerships until 2027.
Initial Design: The company has already shown its early design to Volkswagen employees in Wolfsburg, Germany. This preview gives insiders a first look at the car before it becomes available to the public.
Target Market: Although Volkswagen has not confirmed whether the model will be sold globally, it has been described as a “high-quality, affordable electric Volkswagen from Europe for Europe.” This suggests that the vehicle will primarily target the European market, although future global expansion is still a possibility.
The Vehicle's Place in Volkswagen's EV Strategy
Volkswagen is actively working on a broader range of small electric vehicles, and this $21,000 model will be part of that expansion. The car will be positioned as Volkswagen’s most affordable EV, providing a budget-friendly alternative to other electric models on the market. However, the vehicle is expected to offer quality that aligns with Volkswagen's brand image, balancing affordability with the company's reputation for solid engineering.
ID.2all and Other Models: In addition to this upcoming $21,000 entry-level vehicle, Volkswagen is also preparing to launch the ID.2all. The ID.2all was first revealed as a concept car in 2023 and is expected to reach dealerships by 2026. It will be priced at €25,000, making it slightly more expensive than the upcoming model. The ID.2all will be the brand’s first small all-electric car, and its release is expected to be a major step forward in Volkswagen’s push to dominate the small EV market.
ID Product Family Growth: The $21,000 model fits into Volkswagen’s broader strategy to expand its ID product family, which has already achieved significant success. Since the launch of the ID series in 2019, Volkswagen has sold over 1.35 million ID vehicles worldwide. The ID.3, a popular model, accounted for 500,000 of those sales just last year alone.
Global Market Impact
While Volkswagen has not officially stated whether the $21,000 entry-level EV will be available outside of Europe, the company’s focus on affordability and quality suggests it could play a key role in the growing electric vehicle market. The company’s CEO, Thomas Schäfer, emphasized that this model is “for Europe,” meaning the vehicle will likely be designed with European consumers and market conditions in mind.
That being said, Volkswagen’s other models, like the ID.3 and ID.4, are available globally, and there’s always the possibility of the new model being released in other regions as well, especially if it proves successful in Europe.
Volkswagen’s Continued EV Success
ID.Buzz: The company’s more premium electric offering, the ID.Buzz, is already making waves in the market. The ID.Buzz is a retro-styled electric van with a starting price of $59,995 in the United States. This model has been well-received, especially by consumers seeking a more stylish and functional electric vehicle.
Sales Milestone: Volkswagen has made significant strides in the electric vehicle market. The company sold over 500,000 units of the ID.3 in 2024 alone, contributing to the total of 1.35 million ID vehicles sold worldwide since 2019. With this growing portfolio, Volkswagen is increasingly positioning itself as a major player in the global electric vehicle market.
What to Expect Moving Forward
The $21,000 entry-level EV represents a key part of Volkswagen’s efforts to make electric vehicles accessible to a broader range of consumers. While the model won’t be available for a few years, its unveiling in March will give the public an exciting preview of what’s to come.
By expanding its range of affordable EVs with models like the ID.2all and this new vehicle, Volkswagen is setting itself up for continued success in the EV market, both in Europe and potentially beyond. The shift towards more budget-friendly electric vehicles is expected to accelerate as automakers race to meet demand and regulatory pressures for greener transportation options.
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