Volkswagen Announces EV Under 25,000 Euros
Compact Electric SUV ID2.all to Begin Mass Production in 2025
Tesla, GM, Kia Also Preparing EVs Around 30 Million KRW
Accelerating the Era of Electric Vehicle Popularization
The curtain has risen on the battle for low-cost electric vehicles in the 30 million KRW range. The launch of affordable electric cars is the final challenge for the popularization of electric vehicles. Volkswagen is introducing the compact electric sports utility vehicle (SUV) 'ID.2all' priced under 25,000 euros (about 35 million KRW). Tesla, as well as GM and Kia, have also announced plans to release low-cost electric cars. Going forward, consumers will be able to purchase electric vehicles in the 30 million KRW range without government subsidies from various countries.
On the 15th (local time), Volkswagen unveiled the compact electric SUV model ID.2all concept car (hereafter ID.2) for the first time in the world. The ID.2 is the first front-wheel-drive vehicle to apply Volkswagen’s dedicated electric vehicle platform MEB. The body has a wheelbase of about 2600mm, making it slightly smaller than Hyundai Kona EV, Kia Niro EV, and Chevrolet Bolt EV. It is equipped with a 166kW (226 horsepower) electric drive motor. It can run 450km on a single charge (WLTP standard). Mass production will begin in 2025.
Volkswagen unveiled the ID.2all concept car, a compact electric SUV priced under 25,000 euros, on the 15th (local time). [Photo by Woo Su-yeon]
The design of the ID.2 is friendly yet dynamic. The C-pillar (the pillar between the rear door and rear window of a car) design is borrowed from Volkswagen’s representative model, the Golf. It secures a spacious cargo space of up to 1330 liters. Innovative technologies such as the state-of-the-art driver assistance system Travel Assist and the intelligent light system IQ.Light are also applied.
Volkswagen unveiled the ID.2all concept car, a compact electric SUV priced under 25,000 euros, on the 15th (local time). [Photo by Woo Su-yeon]
The biggest competitive advantage of the ID.2 is its price. The concept of the ID.2 unveiled that day is 'for the people.' Volkswagen set the price of the ID.2 at under 25,000 euros (about 35 million KRW). Compared to the current European small SUV sales price set at around 40,000 euros (about 55 million KRW), it is nearly 20 million KRW cheaper. Although the ID.2 is a model launched to target the European market, there is a possibility of expanding sales to other markets later. In addition, Volkswagen announced that it will launch a micro electric SUV in 2026 and is preparing a model priced under 20,000 euros.
Half-price electric cars are a challenge not only for Volkswagen but for all automobile brands aiming to be popular brands. At the same time, it is a long-cherished wish of consumers. On the 1st of this month, Tesla’s stock price wavered when it delayed revealing the detailed specifications of the half-price electric car 'Model 2' at its Investor Day.
Earlier this month, Elon Musk, CEO of Tesla, announced plans to halve assembly costs by simplifying processes at the Mexico Gigafactory. However, the detailed specifications and price of the 'Model 2' were postponed. Last year, GM announced that it would release the Chevrolet Equinox EV at $30,000 (about 39 million KRW) this year. Kia will start mass production of the compact electric SUV EV3 in the 30 million KRW range from next year.
In particular, with the implementation of the U.S. Inflation Reduction Act (IRA), which has tightened subsidy conditions, pricing policies have become even more important in the U.S. market. European governments are competitively reducing subsidies. This is also why manufacturers are rushing to launch low-cost electric vehicles that do not rely on subsidies.
On this day, Volkswagen revealed the design, detailed specifications, price, and mass production timeline of the affordable electric car ID.2. Compared to other automakers, including Tesla, who are delaying the release of information related to 'half-price electric cars,' Volkswagen’s move is proactive. Volkswagen aims to lead the era of electric vehicle popularization through aggressive pricing policies and building a full lineup of electric vehicle models.
Thomas Sch?fer, CEO of the Volkswagen brand, said, "The ID.2 is a model that shows the direction of the Volkswagen brand," adding, "We are changing to provide electrified mobility to the masses."
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