Volkswagen is going back to its roots with plans for a budget-friendly electric car starting under $21,000 in Europe. The German automaker gave employees a sneak peek at this new entry-level EV — expected to be called the ID.1 — ahead of its public debut in March.
Thomas Schäfer, CEO of Volkswagen Passenger Cars, emphasized the model’s importance as “an affordable, high-quality, and profitable electric Volkswagen from Europe for Europe.” The teaser image shows design elements reminiscent of VW’s successful Up and e-Up city cars.
This compact EV will join VW’s expanding electric lineup alongside the ID.2all, which is set to launch in 2026 with a starting price under $26,000.
The company’s ambitious electrification plans include nine new models by 2027.
Despite selling more than 1.35 million ID vehicles globally since 2019 — with 383,100 deliveries last year alone — VW’s EV progress hasn’t been smooth sailing. Supply chain disruptions, software challenges, and fierce competition from Chinese manufacturers have complicated the automaker’s electric transition.
To accommodate its growing EV lineup, Volkswagen is reshuffling production. The company will move Golf manufacturing to Mexico, making room at its historic Wolfsburg plant for both an electric Golf and a new electric T-Roc crossover. This move reinforces Wolfsburg’s position as VW’s core manufacturing hub during the shift to electric vehicles.
A recent $5.8 billion partnership with Rivian, focusing on electrical architecture and software development, could help streamline VW’s future mass-market EVs. The collaboration might prove especially valuable for developing affordable small cars.
While Europe appears to be the primary target for these new affordable EVs, Volkswagen hasn’t confirmed whether any will reach U.S. shores. This uncertainty comes after the recent cancellation of the ID.7 for the American market.
The strategy marks a significant shift from VW’s 2019 vision, which targeted 15 million EVs across 50 models globally by 2028. That plan emphasized strong presence in Europe, North America, and China, with additional growth expected from a second wave of models.
