Volkswagen is set to launch an entry-level electric city car called the ID 1 in 2027, with a price tag of €20,000. This move is part of the company’s strategy to make electromobility more accessible to a wider audience. The ID 1 will be one of four affordable electric cars manufactured by the Volkswagen Group in Spain, including the Skoda Epiq compact SUV and two other small electric cars priced at €25,000.
Thomas Schäfer, Volkswagen brand CEO, emphasized the importance of attractive and affordable electric vehicles for the widespread adoption of electromobility. Despite the competitive price point, Volkswagen aims to set standards in technology, design, quality, and customer experience in the entry-level segment. However, building smaller electric cars is becoming more challenging due to rising costs and limited physical resources. Schäfer called for more support from governments to ensure the success of electromobility in Europe.
The ID 1 will serve as a replacement for the Volkswagen Up, which recently went out of production after 12 years. While not confirming the return of the Up badge, Volkswagen values its successful names and may retain them in the EV era. The company’s numerical naming strategy for its ID EVs could be retired in favor of more recognizable names like Golf, Passat, and Tiguan.
Kai Grünitz, technical development boss at Volkswagen, revealed that the ID 1 will closely resemble the Up in terms of usage and design elements. The car will be designed to fit into Volkswagen’s brand and functionality DNA while offering a lower price point. It will be developed on a bespoke platform, separate from the ID 2’s MEB Entry architecture, to keep costs down.
While the ID 1 won’t feature advanced autonomy and connectivity functions found in more expensive Volkswagen models, it will prioritize customer demands in its price class. Grünitz suggested the possibility of a smartphone cradle instead of a touchscreen and emphasized the importance of space utilization and innovative storage solutions. The ID 1 will be a pure city car, not intended for long-distance highway driving.
When asked about the profitability of the Up’s replacement, Grünitz suggested that it may not need to generate significant margins on its own. Instead, it could serve as a ‘loss leader’ to introduce younger users to Volkswagen’s EV lineup. The company can rely on higher margins from larger cars to support the production of a less profitable model.
In conclusion, Volkswagen’s plan to launch the ID 1 as an entry-level electric city car demonstrates its commitment to making electromobility accessible and appealing to a broader customer base. By offering an attractive price point and focusing on customer demands, Volkswagen aims to set new standards in the entry-level segment while addressing the challenges of rising costs and limited resources. The ID 1 will serve as a successor to the Volkswagen Up, providing customers with an affordable and efficient electric option for city driving.
