VW Unveils Budget EV to Win Over Europe's Squeezed Consumers

Volkswagen AG became a global car giant thanks to the Beetle, an affordable model for the masses.

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GERMANY –

Now, the German automaker is finally unveiling a budget car for the electric vehicle (EV) age as it tries to catch up with Chinese brands and other rivals with cheaper options.

VW on March 5 presented the compact ID.Every1 concept car that will cost around €20,000 (S$28,800)—its lowest-priced EV yet. The first VW-brand model to use electric architecture jointly developed with Rivian Automotive, it is due to start production in two years at an undecided location in Europe.

The model will offer more than 249km of range and is the "last piece of the puzzle" for VW's next-generation line-up, said Mr Thomas Schaefer, chief executive of the brand.

European carmakers are struggling to convince consumers to make the switch to EVs, given their higher sticker prices and lingering concern around charging infrastructure.

VW is seeking to regain ground on rivals with its own cheaper EV models after a year when sales slumped.