Volkswagen Mulls New Entry-Level EV with a Sub-€20,000 Price

Volkswagen has confirmed plans to launch a new entry-level EV model with a sub-€20,000 price, set to arrive later in 2027.

It is no secret that Volkswagen is developing a new EV model that will serve as its entry-level offering. Set to make its official debut later in 2027, this new EV model is targeted to be priced around the €20,000 (RM100,000 approximately) mark, making it more competitive than current EV superminis like the Citroen e-C3 and Peugeot e-208.

The upcoming VW 'ID.1' will replace the e-UP (left) as the brand's new entry-level EV, set to share similar underpinnings we saw on the ID.2all concept (right).

This new EV model, dubbed the Volkswagen ID.1, will be one of the four upcoming EV models set to be built by the Volkswagen Group, with the other three belonging to other sub-brands under the group’s massive wings. Set to replace the Volkswagen e-Up, the ID.1 promises to offer better usability and practicality over the model it replaces, all in the same supermini package that is suitable for the dense urban environment in Europe.

Ever since the VW ID.2all concept was revealed last year, Volkswagen has been in the midst of developing a new EV model with comparable prices to their ICE-powered counterparts, let alone in a smaller package.

VW brand CEO Thomas Schafer

VW brand CEO Thomas Schafer has admitted that building a small electric car is increasingly difficult simply due to the rising costs and lack of physical resources like the rare earth materials needed for battery pack production.

“The future is electric. In order for electromobility to become widespread, attractive vehicles are needed, especially in the entry-level segment.”

“This task has become more demanding due to rising energy, material, and raw material costs. One thing is clear: electromobility from Europe for Europe can only succeed with political support and competitive framework conditions,” the VW boss added.

The new ID.1 EV will retain some similar design cues we saw on the e-UP (left), according to VW technical development boss Kai Grunitz (right).

In terms of design, VW technical development boss Kai Grunitz revealed that the new VW ID.1 will retain some of the quirky design features present on the VW e-Up, with a goal to make it an obvious successor to said model.

“The ID.1’ will be close to the Up regarding the usage of that car," the development boss said when speaking to Autocar UK. "There aren't so many possibilities to design a small vehicle for cities in terms of what it looks like. It will be a car that fits into the Volkswagen brand design DNA and functionality DNA but at a lower price.”

Volkswagen e-Up! EV supermini

Grunitz further added that the new ID.1 will be an important model for VW’s new EV lineup, as it will set a benchmark for a truly affordable electric car that will help to convince VW customers that EV is the right way. While the development boss remained tight-lipped about the exact launch date for this new EV model, we can expect the ID.1 to debut some time later in 2027, after taking account of the brand’s new 36-month vehicle development timeframe.

Set to underpin the MEB EV platform shown on the ID.2all concept, the new VW ID.1 will be developed with a main focus on keeping the cost down wherever possible. This means that the ID.1 might not be getting the same levels of semi-autonomous driving capabilities and tech amenities we saw on current-gen VW models.

More importantly, VW’s push for affordability also means that the ID.1 won’t be getting the latest fast-charging capabilities, such as the 200 kW DCFC rate we saw on current EV products under the VW Group’s umbrella. But then again, such functionality may also be overkill for such a small car that is meant for pure city driving.

For reference, the recently discontinued Volkswagen e-Up harnesses a small 18.7-kWh lithium-ion battery pack that juices its 81 HP-rated single e-motor setup for a claimed maximum EV range of 260 KM. Due to its small battery pack, the e-UP only supports 40 kW DCFC, allowing the pack to be charged up to 80% in under 30 minutes.