Volkswagen is preparing to launch a "killer of Chinese electric cars" for 20,000 euros
Volkswagen has announced plans for a new electric car costing around €20,000 to compete with Chinese manufacturers.
Here's What We Know
The new car, likely to be called the ID.1, will go into production in 2027. It will reportedly be an electric hatchback. It is intended to compete against low-cost electric cars from Chinese brands such as BYD, which recently overtook Tesla in sales in the UK. Volkswagen chief executive Thomas Schäfer said the new model will be an affordable, high-quality and profitable electric car for Europe, while automotive journalist Quentin Willson said the car could be the "killer of Chinese electric cars".
Volkswagen also plans to cut 35,000 jobs by 2030 due to declining demand for electric cars in Europe and growing competition from Chinese companies. In 2024, electric car sales in Europe fell 3 per cent to 3 million units. In Germany alone, data from January to November 2024 showed that the number of all-electric cars sold in that country fell by 26 per cent.
Experts say that Chinese brands are very competitive and they can design and build a new electric car much faster than Western brands. It is reported that the only way to stop the onslaught of cheap Chinese electric cars, will be to reduce the cost of European battery electric cars to encourage their faster adoption.
Source: telegraph
