Volkswagen is making its mark in the electric vehicle (EV) market with a new budget-friendly electric car designed to undercut competitors — especially Tesla.
For years, high prices have kept EVs out of reach for many consumers.
But Volkswagen, the world’s second-largest automaker by sales volume, now wants to change that with a new model expected to start at just €20,000.
According to Inside EVs, the car — believed to be called the ID.1 — is part of Volkswagen’s plan to stay competitive in a rapidly shifting industry.
Catch-Up, Attack, Lead
At a recent employee meeting in Wolfsburg, the company outlined a three-phase plan called "Catch-Up, Attack, and Lead." The first phase is focused on addressing past challenges, the second on expanding aggressively, and the third on securing a leadership position in the global EV industry.
The ID.1, designed specifically for the European market, will be produced in Wolfsburg, which Volkswagen now calls "the capital of our new fully electric compact class."
The model will be officially presented in March 2025 and is expected to hit the European market in 2027. It remains uncertain whether Volkswagen will bring it to North America.
First Look at the ID.1
A teaser image of the car shows a compact hatchback with a clean and conventional design. The front features a horizontal black frame connecting the headlights, with an illuminated Volkswagen logo in the center. Vertical fog lights are integrated into the bumper, giving the vehicle a modern look.
While Volkswagen has not yet revealed detailed technical specifications, the ID.1 is likely to be built on the same MEB platform used in the company’s other ID models.
"We have launched the largest future plan in Volkswagen's history," said VW CEO Thomas Schäfer, as cited by Trend. "An important step in this is to make e-mobility attractive to everyone—that is our brand promise."
Before the ID.1 reaches the market, Volkswagen will first introduce the ID.2, a compact electric hatchback set for release in 2026. The company also plans to launch the next-generation fully electric Golf, which will be built on the upcoming Scalable Systems Platform (SSP).
Volkswagen vs. Tesla
Volkswagen is entering a critical phase as it fights to keep up with both Tesla and Chinese EV manufacturers. Sales have been falling, and competition is intensifying, especially in Europe and China.
While Tesla is still a dominant force, its recent slowdown in sales has given rivals a chance to gain ground. And while Tesla once promised an affordable EV, Volkswagen may be the first to actually deliver it.
With the ID.1, Volkswagen hopes to steal market share from both Tesla and lower-cost Chinese EV makers — finally making electric cars accessible to the masses.
