Volkswagen recently announced its plans to build affordable electric vehicles as competition heats up in the EV space largely owing to the presence of strong Chinese rivals. This decision comes after discussions with Renault about a potential collaboration on the project fell through recently.
The automobile aims to manufacture electric cars for the European market, priced anywhere around 20,000 euros. As per a report by Reuters, Volkswagen has stated that a global premiere is scheduled for 2027.
"It's about entry-level electric mobility from Europe for Europe," Oliver Blume, Chief Executive, Volkswagen said. "In doing so, we combine a clear commitment to Europe as an industrial location, a European industrial policy and ultimately act in the interests of European customers."
The new 'ID.1' project has been brought to the table to counter the growing presence of Chinese competitors in Europe, who often benefit from a cost advantage of up to 30 per cent over their Western counterparts. As these competitors aggressively target European markets, many well-established car manufacturers are facing increased competition on their home ground.
Volkswagen stated that it will heavily localize the production of its new electric vehicle project in Europe. It is also expected to reduce component transport routes, thus lowering emissions.
The company had earlier mentioned that the European automotive industry has a window of two to three years to brace for the looming competitive threat, cautioning that the industry's survival could be jeopardized if it fails to adapt.
This has pushed the automobile company to implement a cost-saving initiative worth 10 billion euros at its primary brand by 2026.
"One thing is clear, electromobility from Europe for Europe can only succeed with political support and competitive framework conditions," Thomas Schaefer, board member of Volkswagen told Reuters.
