Volkswagen is teasing the ID.1 electric concept car, following the upcoming ID.2. While Skoda had plans to develop a version, named Skoda Epiq, for around €20,000, financial concerns have led them to withdraw from the project. Skoda’s focus remains on affordable combustion models, with a commitment to expanding its electric lineup. Volkswagen is now collaborating with Rivian to manage development costs, raising questions about the ID.1’s market success without Skoda’s support.
Volkswagen’s Teasing of the ID.1 Concept Car
Volkswagen has begun to unveil its latest electric concept car, the ID.1, which is set to follow the upcoming ID.2 expected to launch this year. While Skoda plans to introduce a derivative of the ID.2, named Skoda Epiq, utilizing the MEB Entry platform at a price point of €25,000, the Czech automaker remains cautious about the ID.1, which is projected to be priced around €20,000.
The Financial Risks of Ambitious Automotive Projects
In the automotive sector, it’s a little-known fact that the most ambitious projects often yield the least financial return. Iconic models like the Honda Integra Type R, Lexus LFA, Audi A2, and Bugatti Veyron are examples of vehicles that have become financial burdens for their manufacturers. This caution is particularly relevant for Skoda, as reports suggest that the e-Up! model was costing its makers €10,000 for each unit sold. Although Skoda initially aimed to take full control of the ID.1’s development, the project ultimately shifted back to Volkswagen.
Concerned about the financial implications of a low-margin electric city car, Skoda has opted to step away from pursuing the ID.1. Consequently, it appears there will be no Skoda variant of the Volkswagen ID.1. Volkswagen had sought to collaborate with Renault for this project, but efforts to use Renault’s electric platform were thwarted by the Volkswagen board’s veto.
Skoda’s decision also stems from the understanding that the affordable electric city car market is expected to generate only minimal profits per unit. For Volkswagen to recoup the development costs of the ID.1, a high volume of sales will be crucial, and without Skoda’s backing, achieving those numbers may be even more challenging.
To optimize the development costs associated with the ID.1, Volkswagen is now partnering with Rivian, an American electric vehicle expert. This collaboration aims to minimize the number of units required for production, thereby reducing overall expenses.
Skoda’s Commitment to Affordable Models
A representative from Skoda has confirmed that the entry-level model will continue to be the Skoda Fabia, which will remain available with combustion engines priced under €20,000 even after 2030. This raises the question: is there no plan for an electric city car from Skoda?
The spokesperson emphasized Skoda’s ongoing commitment to expanding its electric vehicle lineup, which has recently seen the addition of two new models: the Skoda Elroq and the updated Skoda Enyaq. Furthermore, a small electric SUV, the Skoda Epiq, is anticipated to debut this year, utilizing the same MEB Entry platform as the ID.2 and ID.2 SUV.
However, it seems that there will be no collaborative effort between Skoda and Volkswagen for an affordable electric city car priced at €20,000. While Skoda previously leveraged the Up platform to offer the Citigo in both thermal and electric formats, the current landscape of affordable electric models is surprising. Many automotive groups are actively working to expand their range of budget-friendly electric vehicles based on shared platforms.
As competitors forge partnerships to enhance profitability, the question remains: can Volkswagen succeed independently with the ID.1? The answer will unfold over time, but it’s not out of the realm of possibility to see a variant of the ID.1 emerge under different Volkswagen group brands, including Skoda.