Volkswagen Plans Its Cheapest Electric Car Yet, Priced Around €20,000, for 2027

Volkswagen is preparing an electric car that will undercut its ID. Polo, with a starting price of around €20,000 (about $22,500). The model is due in 2027 and is meant to be the cheapest EV the brand has offered.

It is the latest addition to the Electric Urban Car Family, the Volkswagen Group's response to Chinese manufacturers such as BYD. The family currently comprises the Volkswagen ID. Polo and ID. Cross, the Cupra Raval and the Skoda Epiq, all built on the MEB+ platform. Entry-level versions of the ID. Polo and ID. Cross have already gone on sale from €24,995 and €27,995 respectively.

The new car follows the ID. EVERY1 concept that Volkswagen showed in March. The production version is expected to reach showrooms next year as the ID. Up!. VW brand CEO Thomas Schäfer called it "the last piece of the puzzle" in the company's effort to offer the broadest choice in the volume segment.

At 3,880 mm long, the car sits between the former Up! at 3,600 mm and the ID. Polo at 4,053 mm. Despite its small size, Volkswagen says it will seat four people and provide 305 liters of luggage space.

Volkswagen has not yet published full technical details. The car is expected to use the same 37 kWh lithium iron phosphate (LFP) battery as the base ID. Polo and ID. Cross, a choice that helps hold down costs. In the ID. Polo, that battery delivers up to 334 km (207 miles) of WLTP range, so the smaller car could match or slightly exceed it. Volkswagen has committed to at least 250 km (155 miles). A new 70 kW (94 hp) electric motor will give a top speed of 130 km/h (80 mph).

The production model is one of nine new Volkswagen launches planned through 2027. The company did meet its pledge to bring the ID. Polo with the 37 kWh battery to market for under €25,000, though it remains to be seen whether it can reach the €20,000 mark with this car.

Volkswagen has not said where the car will be built. Spanish magazine Autofácil reports it could be produced in Spain. The group already makes the ID. Polo and Cupra Raval at its Martorell plant and the ID. Cross and Skoda Epiq at its Navarra plant, both in Spain.

Demand for the family has been strong so far. Nearly 150,000 orders have been placed since series production began in June.

Buyers in the United States will not get the new entry-level model. Volkswagen is instead introducing the ID. Tiguan there in 2027 as a replacement for the ID.4.