Volkswagen aims to revolutionize its future vehicles into EVs. As Oliver Blume, the company's CEO announced, the company is scheduled to launch a cheap electric car at around $22,000 by 2025.
Interestingly, the key to this ambitious pricing strategy lies in groundbreaking advancements in battery technology and cost reduction-something that Volkswagen needs to thrive in the industry.
What's With the Cheap Volkswagen EV?
As Blume said via Reuters, the pivotal factor enabling the realization of a $22,000 EV is the significant reduction in battery costs.
Volkswagen aims to achieve this through the utilization of unified battery cells, first introduced during the Power Day in 2021. These cells, expected to be manufactured in the Salzgitter factory from 2025, boast the potential to halve battery costs.
The unified cells are designed for integration into up to 80% of all Volkswagen Group EV models.
The Salzgitter factory, slated to produce the unified cells, aims to reach an annual capacity of 40 GWh by the future, catering to the production needs of approximately 500,000 vehicles.
Blume highlighted the responsibility of delivering the right products at the right price to meet market demands.
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Unveiling the ID 2all Concept
In March, Volkswagen unveiled its ID 2all concept, signaling the company's intent to compete with industry leaders like Tesla and BYD. Priced at under 25,000 euros (approximately $27,000) with a range of up to 450 km (279 mi), the ID 2all is positioned as Volkswagen's most affordable EV yet.
The production version is expected to debut in Europe in 2025, built on the MEB Entry platform as part of Volkswagen's ambitious plan to introduce ten new models by 2026.
Scaling Affordability Further Down With ID 1 Project
Going even further down the affordability ladder, Volkswagen has teased the ID 1 project, an electric car priced under $22,000.
Expected to be the smallest and most budget-friendly electric model from Volkswagen, the ID 1 draws inspiration from the successful gas-powered Polo, per Autocar. Sharing components with the ID 2all, including battery options, this compact EV aims to capture a broader market.
"After early adopters were reached with electric cars, we now need consumers to be convinced by the technology, who don't have the opportunity to install a charging station at home," Blume said in a conference on Wednesday, Nov. 15.
The ID 2all comes equipped with fast-charging capabilities (10%-80%) in just 20 minutes, addressing concerns about charging accessibility for potential EV owners.
Navigating Market Pressures
Volkswagen's pursuit of affordable EVs comes amidst market challenges, including a recent halt in EV production at German plants due to a shortage of electric motors, per Electrek's take.
Blume attributed this to a decline in EV orders, pointing to factors such as rising inflation and the end of subsidies impacting demand. The competitive landscape, with industry leaders slashing prices, further intensifies the need for Volkswagen to remain agile and responsive.
It's amazing to know that Volkswagen's vision of an affordable $22,000 electric car signals a paradigm shift in the EV market. This will leverage technological innovation and strategic manufacturing to make electric mobility accessible to a broader audience.
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