Volkswagen’s Rumored Sub-$22k Electric Car Is Real

It’s a little mystifying to me that European automakers thought there would just be this neverending pool of rich people who would buy electric cars. The reality is, many of those rich people they were targeting already purchased Teslas and then decided they… still wanted Teslas.

The logic of this is appealing if you’ve got to justify financial projections to a board of directors. You start with some expensive cars that help pay for the tech, and then you let it filter down to more affordable models.

Therefore, Volkswagen hit the market early with the Porsche Taycan, an expensive (starting at six figures) electric sedan, and then started to follow it up with slightly less expensive models.

Now Volkswagen is, like other German automakers, facing down the triple threat of losing its competitive edge, its manufacturing base, and its market share to Chinese companies.

What’s a Volkswagen to do? Work to build a family car that has a decent range and costs less than 20,000 EUR or $20,000 USD. Volkswagen essentially confirmed the car with the announcement today that it would be building such a vehicle, at that price, and in Europe:

“Generations of people associate the strong brands of the Volkswagen Group with their first car – and with affordable mobility. As a group with strong brands, we continue to assume this social responsibility to this day. That’s why I’m very pleased that we’re launching a future-oriented project. It’s about entry-level electric mobility from Europe for Europe. In doing so, we combine a clear commitment to Europe as an industrial location, a European industrial policy and ultimately act in the interests of European customers.”

That’s Volkswagen CEO Olver Blume and, if you couldn’t read between the lines there, this is a European car and not necessarily intended for the United States. Here’s more:

The project is another milestone on the way to making electromobility widespread in Europe. Intensive work is already under way on the “Electric Urban Car Family”, with which the Brand Group Core will present electric cars for under 25,000 euros as early as the end of 2025. Two new compact cars, one from VW and one from CUPRA, as well as two small SUVs, one each from Škoda and one from VW, are planned here. All four vehicles will be built in Spain. With the project for all-electric entry-level mobility for 20,000 euros, the Volkswagen Group is now taking the next, consistent step.

The 25,000 EUR car ($27K) is likely the Volkswagen ID.2 and CUPRA Raval, which are also cars we’re not getting in the United States. We’re also not getting the Volkswagen ID.7 anytime soon. In fact, it seems like there are more EVs we’re not getting from VW than we’re getting these days. We’ll get Scouts, eventually, so that’s something. And maybe a CUPRA.

This vehicle isn’t due until 2027, so we’ve got a while. In the interim, the Chinese-built Dacia Spring is the least expensive regular EV you can get in Europe at around 17,600 EUR, or slightly under $20,000.

Presumably, this new EV from Volkswagen, which might just end up being the VW ID.1, will also be a little city hatchback with a backseat and a range in the mid-100 miles on the WLTP city test cycle.

If they really wanted to make it a recognizable EV car for Europe they should just make it the New New Beetle.