Volkswagen commits to sub-€20,000 EV by 2027

The Volkswagen Group has announced that it will launch its first sub-€20,000 EVs in 2027.

The parent company to Volkswagen, Skoda, Seat, Cupra, Audi and Bentley said it had decided to ‘make all-electric entry-level mobility more widespread’ by directing more focus at the lower end of the EV market.

Effectively an all-electric replacement for the Up/Citigo/Mii city cars, the new model looks set to compete with a growing number of more affordable EVs from the likes of Stellantis, which is about to launch the Citroen e-C3, and Dacia, which is bringing the £15,000 Spring to market this year.

Thomas Schäfer, CEO of Volkswagen and head of the Brand Group Core, said: “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 Group has already said its ‘Group Core’ brands – VW, Skoda, Cupra and Seat – will release a number of EVs priced below €25,000 by the end of 2025. These will include two Polo-sized hatchbacks – expected to be the VW ID.2 and Cupra Raval – and two small SUVs – the Skoda Eqip and a VW equivalent.

All four of those vehicles will be built in Spain and the group said the new, even cheaper cars will also be designed and built in Europe for Europe. It noted that a high degree of localisation was not only good for Europe’s industrial future but also reduced the financial and environmental costs of long transport routes.

Currently, the group’s cheapest EV is the VW ID.3, which starts at around £37,000.

Oliver Blume, CEO of Volkswagen Group, said: “Generations of people associate the strong brands of the Volkswagen Group with their first car – and with affordable mobility.

“As a group with strong brands, we continue to assume this social responsibility to this day. That’s why I’m very pleased that we’re launching a future-oriented project. It’s about entry-level electric mobility from Europe for Europe. In doing so, we combine a clear commitment to Europe as an industrial location, a European industrial policy and ultimately act in the interests of European customers.”

The group had been in talks with Renault over a joint city car project which could have seen the VW model share its underpinnings with a new electric Twingo. However, those discussions have reportedly broken down and the VW Group appears to be embarking on this project without a partner.

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Matt Allan

Matt is Editor of EV Powered. He has worked in journalism for more than 20 years and been an automotive journalist for the last decade, covering every aspect of the industry, from new model reveals and reviews to consumer and driving advice. The former motoring editor of, The Scotsman and National World, Matt has watched the EV landscape transform beyond recognition over the last 10 years and developed a passion for electric vehicles and what they mean for the future of transport - from the smallest city cars to the biggest battery-powered trucks. When he’s not driving or writing about electric cars, he’s figuring out how to convert his classic VW camper to electric power.