Volkswagen baby electric car confirmed: targets low-$30K pricing

Volkswagen aims to introduce an electric car for close to $30,000 as it bids to dominate the EV market in the second half of this decade and beyond.

The model could be called the ID.1, but also has the potential to use the Polo nameplate in some form and become the German automaker’s smallest electric car.

It will sit below the ID.2 that was unveiled overnight in concept form and is due to go on sale in 2026 with a target price of less than EU€25,000 (AU$40,000).

The baby VW electric car is expected to use components from the ID.2, including a variation of its MEB Entry front-wheel-drive battery platform and likely the smaller of two electric motors offered.

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The ID.2all concept (pictured above) is already just four metres long – about the size of a Polo – and it’s unclear at this stage just how much smaller the ‘ID.1’ would be, perhaps Up-sized.

Volkswagen will use lithium-ion phosphate batteries – as seen in base models of the Tesla Model 3 and Y – to help keep costs down. Cupra and Skoda versions of the baby EV are also planned.

In a statement, Volkswagen admitted building a super-affordable EV isn’t a simple task.

“In spite of all the challenges, Volkswagen is also working on an electric car at a price of less than EU€20,000 (AU$32,000),” said the company.

“This will give the car manufacturer the widest range of electric vehicles compared with its competitors, and the company is aiming to achieve an electric car share of 80 per cent in Europe. Volkswagen Passenger Cars has previously based its calculations on a share of 70 per cent.”

Volkswagen will release 10 new EVs by 2026. In addition to the ‘ID.1’ and ID.2, a heavily revised ID.3 hatch is confirmed, along with a long-wheelbase version of the ID.Buzz people-mover, ID.7, and a compact electric SUV.

The Volkswagen Group’s first electric car in Australia will be the Cupra Born, a sporty hatchback which arrives in April with a $59,990 price tag before on-road charges.

VW’s own ID range will debut locally in late 2023 with the ID.4 mid-sized SUV, to be followed by the updated ID.3, ID.5 and ID.Buzz in 2024.