Volkswagen also plans to offer an affordable electric car at a price of less than 20,000 euros. If it can call itself ID.1, it will above all have to find a place in a market which will be increasingly competitive.
Volkswagen, one of the giants of the automobile industry, recently made an interesting announcement for the electric vehicle market. The group’s CEO, Oliver Blume, declared that the brand could produce an electric car for less than 20,000 euros in the second half of the decade, between 2026 and 2030.
This announcement is part of the continuation of the strategic development of the brand which already plans the launch of the ID.2 around 2025. The latter should be launched at around 25,000 euros for around 450 km of autonomy.
A reduction in battery costs necessary
The main lever for reducing the prices of electric cars lies in reducing battery costs. Volkswagen plans to produce a unified battery cell, which is expected to cut the cost of batteries in half. The other aspect lies in the chemistry used by them. While Nickel Manganese Cobalt (NMC) batteries offer better energy density and accept high charging powers, they are also more expensive to produce than Lithium Iron Phosphate (LFP) batteries found on more high-end models. . LFP batteries, however, have the advantage of being more reliable over time.
In any case, it is after the opening of the Salzgitter battery factory, in 2025, that the Volkswagen group intends to set up a lower-cost battery production line.
In addition to the financial aspect, CEO Oliver Blume highlights the need to improve charging infrastructure and increase vehicle autonomy to encourage more consumers to go electric.
A more popular car
“ After reaching early adopters, we now need to convince more consumers, those who do not have the possibility of installing a charging station at home. Inflation pressure, lack of charging infrastructure and removal of subsidies are also dampening demand for electric cars », notes Oliver Blume.
This observation comes a few weeks after the publication of the group’s quarterly results according to which demand for electric vehicles is down 50%.
This initiative by Volkswagen comes against a backdrop of growing competition in the market for affordable electric cars. Others
manufacturers, such as Renault with its future electric R5 or its future Legend which takes up areas of Twingo phase 1, are also positioning themselves to offer electric vehicles at competitive prices. Citroën also recently unveiled the electric ë-C3 for a price of less than 25,000 euros, as well as another version, with a smaller battery, for less than 20,000 euros.
In any case we will have to wait since the potential arrival of the ID.1 will not happen before 2026.
Source : Reuters
11