Volkswagen Group is to introduce “affordable” electric vehicles for Europe, priced from around €20,000/£17,000 in a bid to compete with Chinese rivals.

Volkswagen is working on entry-level EVs that will premiere in 2027 for its Brand Group Core

The European car giant confirmed that it’s working on entry-level EVs that will premiere in 2027 for its Brand Group Core, which encompasses its volume brands.

Thomas Schäfer, CEO of the Volkswagen brand and head of the Brand Group Core, said: “The future is electric. In order for electromobility to become widespread, attractive vehicles are needed, especially in the entry-level segment. Our brand promise is: electromobility for all. This promise is now being fulfilled in the Brand Group Core.

“Despite the attractive price, our vehicles will set standards in the entry-level segment in terms of technology, design, quality, and customer experience.”

The Volkswagen brand chief said the project would require a high degree of localisation in Europe – which would benefit Europe as an industrial location – a move that would also help reduce the carbon footprint from component transportation.

Schäfer also stressed the need for political and regulatory support for low-cost EV manufacturing.

“One thing is clear: electromobility from Europe for Europe can only succeed with political support and competitive framework conditions.”

Teased as a small hatchback in a shadowy image, the entry-level EV would follow on from the group’s “intensive work” already underway on the ‘Electric Urban Car Family’.

This will see the Brand Group Core present electric cars for under €25,000 (some £21,000) as early as the end of 2025.

Already previewed by the ID.2 all concept, the project will spawn 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. All four vehicles will be built in Spain.