Volkswagen plans affordable EV to compete with Chinese brands in Europe

Volkswagen is developing a new entry-level electric vehicle, based on the ‘ID. EVERY1’ concept, aimed at the European market with an expected launch around 2027. The model is intended to compete with low-cost electric vehicles from Chinese manufacturers like BYD. The new vehicle is expected to be priced at approximately 20,000 euros, positioning it below the ID. Polo and ID. Cross.

The vehicle is expected to feature a compact design with a range of at least 250km per charge and may utilize a 37kWh lithium iron phosphate (LFP) battery to maintain cost competitiveness. Volkswagen is also implementing a ‘Future Plan 2030’ to strengthen competitiveness, which includes cost-cutting measures and potential job adjustments.

This move comes as European EV sales grew by over 30% in 2025, driven by stricter EU CO2 emission standards. However, European automakers face significant financial pressure. Stellantis reported substantial business restructuring costs, while Volkswagen’s operating profit margin saw a decline, reflecting the challenges of the energy transition and intense competition from Chinese imports, which accounted for 20% of EU battery electric vehicle sales in 2025.