The Future of Volkswagen: A Sneak Peek at the Upcoming Entry-Level EV
Volkswagen has recently teased a new entry-level electric vehicle that is set to launch in the coming years. This new EV, rumored to be named ID.1, will serve as an all-electric successor to the now-discontinued Up hatchback. Positioned below the Volkswagen ID.2all, which made its debut as a concept in 2023 and is expected to hit the market in 2026, the ID.1 is anticipated to have a base price of €20,000 (approximately $20,500).
The German automaker aims to attract a wide range of consumers with this affordable electric hatchback. Volkswagen expressed optimism that the introduction of this “high-quality” EV will contribute to the company’s profitability. The vehicle is scheduled to be unveiled in March, with a commercial launch tentatively planned for 2027.
While European customers can look forward to the release of the ID.1, buyers in North America and other global markets may be disappointed as Volkswagen currently has no plans to introduce this model outside of Europe. The company emphasized that the vehicle is “from Europe for Europe,” hinting at its exclusivity to the continent, at least initially. However, given China’s significance as a key market for VW, there is a possibility that the ID.1 may eventually make its way to the Asian nation.
The upcoming ID.1 is poised to compete with Chinese electric cars that offer advanced features at competitive prices. BYD, a leading Chinese EV manufacturer, recently surpassed Tesla’s market share in certain European countries. In the UK, BYD sold more passenger cars than Tesla last month, according to data from the Society of Motor Manufacturers and Traders.
As part of its future strategy, Volkswagen is focusing on producing low-cost electric vehicles, with the ID.2all and the newly announced ID.1 models being based on the modular electric drive (MEB) platform. The existing ID lineup has gained significant traction in the market, with Volkswagen selling over 1.35 million EVs globally since 2019. In 2024 alone, the company sold 383,100 electric vehicles, solidifying its position as the sixth-largest EV manufacturer worldwide.
Volkswagen is gearing up for significant changes at its Wolfsburg factory in Germany to support the production of next-generation affordable EVs. Reports suggest that the historic plant will undergo extensive renovations and upgrades to facilitate electric vehicle manufacturing. In preparation for this shift, Volkswagen plans to move the production of its Golf hatchback to Mexico, making room for upcoming electric models like the electric Golf and T-Roc.
