Volkswagen has announced its ambitious plans to introduce an entry-level electric vehicle priced at approximately €20,000 (around INR 18 lakh) as part of its long-term electrification strategy. The announcement was made at a works meeting in Wolfsburg, where employees got a first glimpse of the upcoming electric model. The new EV is set to be a key part of Volkswagen’s effort to make electric mobility more accessible while maintaining profitability. The company plans to showcase a show car version in March 2025, with the final production model expected to launch in 2027.
Volkswagen’s entry-level electric car will be developed under the Brand Group Core, which oversees the brand’s compact all-electric models. It will be built on the Scalable Systems Platform (SSP), Volkswagen’s next-generation all-electric and fully digitalised mechatronics platform. The new model will be positioned alongside the production version of the ID. 2all, which is scheduled to launch in 2026 with a base price of under €25,000 (approximately INR 22.5 lakh). Together, these vehicles will form Volkswagen’s new electric small car family, designed to meet the demand for affordable and high-quality EVs in Europe.
Thomas Schäfer, CEO, Volkswagen brand, described the new entry-level EV as an “affordable, high-quality, profitable electric Volkswagen from Europe for Europe,” highlighting Volkswagen’s ambition to lead in sustainable mobility. The Wolfsburg plant, Volkswagen’s traditional manufacturing hub, will be central to this transformation. The plant will introduce new production techniques and will be responsible for manufacturing the electric successor to the Golf and the high-volume electric T-Roc.
Volkswagen’s electrification plan is structured in three phases: Catch up, focusing on optimising cost structures and expanding the model portfolio; Attack, which will see the launch of nine new models by 2027, including the ID. 2all and the entry-level EV; and Lead, aiming to position Volkswagen as the technological leader in the global volume car market by 2030. The company has already sold over 1.35 million ID. models globally since launching the ID. series in 2019, with 383,100 all-electric vehicles sold last year.
As part of its restructuring, Volkswagen has also confirmed that the Golf’s production will be relocated to Mexico, freeing up space at Wolfsburg for advanced electric vehicle manufacturing. The plant will play a crucial role in developing and producing the SSP-based electric Golf and T-Roc, which are expected to contribute to an annual volume of over 500,000 units. Daniela Cavallo, Chairperson of the General and Group Works Council of Volkswagen AG, stressed that Wolfsburg would remain at the heart of Volkswagen’s innovation strategy and would continue to set new standards in automobile production.
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