Volkswagen Aims to Debut New Affordable Electric Vehicles in 2027 With Prices Around $22,000

Volkswagen is aiming for its new low-cost electric vehicles to debut in 2027. The new affordable VW EVs are expected to be priced around $21,800 (20,000 euros).

VW still aims for affordable EVs to debut in 2027

After walking away from its partnership to develop an entry-level EV (20,000 euro) with Renault, Volkswagen is going solo.

VW said last week it was still looking at its options for affordable EVs. Meanwhile, after failing to find an agreement with VW, Renault still plans to launch a low-cost Twingo e-Tech successor, starting around the same price.

According to a new Reuters report, VW plans to unveil its new affordable EVs in 2027. Volkswagen still wants prices around $21,800 (20,000 euros).

The German automaker revealed its ID 2all concept last March, a preview of the affordable EV's design.

VW's ID 2all electric car is "spacious like a Golf" but "affordable like a Polo," the company said. The entry-level EV is expected to start under $27,000 (25,000 euros), but VW is targeting an even lower-priced model, likely called the ID 1.

Based on a modified MEB platform, the ID 2all EV is expected to get up to 279 miles (450 km) range. The ID 1 will likely pull parts from the ID 2all with smaller battery options, like 38 or 58 kWh.

Volkswagen has also teased an ID 2all SUV (shown above). The entry-level electric SUV is expected to debut in 2026.

Electrek's Take

Although Volkswagen is promising to reveal affordable EVs in 2026 or 2027, several low-cost options are already hitting the market.

For example, Volvo launched the EX30, starting at around 36,000 euros ($39,150) in Europe. Volvo's cheapest EV starts at $35,000 in the US with deliveries expected to begin this summer.

It also officially launched in China last week. Starting at $27,800 (200,800 yuan), the Volvo EX30 will rival BYD's low-cost EVs, like the Atto 3 and Dolphin.

GM's new Chevy Equinox EV is now being delivered to customers in the US. Although the cheapest model currently starts at $43,295, GM is promising the entry-level Equinox 1LT FWD version will be available to order this year for around $35,000.

With the tax credit, the current 2LT model starts at $35,795. Once the entry-level version hits the market, prices are expected to be as low as $27,495 (with the EV tax credit included).

Several other automakers, including Kia, have revealed new affordable EVs. Last week, Kia unveiled its EV3 with up to 600 km (372 mi) WLTP range. It will kick off a series of low-cost EVs, including the EV2, EV3, EV4, and EV5. Kia's new EVs are expected to be priced around $30,000 to $50,000.

The Kia EV3 will launch in Korea in July 2024, ahead of a European rollout in the second half of the year. Kia announced plans to expand EV3 sales into other regions but did not mention the US specifically.

Next year, Kia is expected to launch the EV4, its take on an entry-level electric sedan, starting at around $35,000.

The South Korean automaker already launched the EV5 in China, with starting prices around $20,000 (149,800 yuan). However, in Australia, it will cost around $40,000 (70,000 AUS).

Meanwhile, Hyundai and Kia already have some of the most affordable EVs in the US market. The average IONIQ 6 selling price in the US was around $36,506 in the first quarter of 2024. The upgraded Hyundai Kona Electric starts at $32,675 while the IONIQ 5 starts at $41,800.

By 2027, an affordable Volkswagen EV may not seem so special, with several already hitting the market.

On the other hand, demand for lower-cost electric cars is expected to continue steadily rising. Can VW meet the demand? Or will they get washed out in a sea of competition?

Written by Peter Johnson for Electrek