VW plans 2027 debut for $22,000 EV for Europe, beyond

Volkswagen on Tuesday announced a goal of launching an EV priced at 20,000 euros—equivalent to $22,000 at current exchange rates—in 2027.

This affordable EV is aimed at the European market, with a high degree of manufacturing and supply-chain localization entailed in the project, VW said in a press release. This will allow for shorter transportation routes for components, helping to lower the overall carbon footprint of the vehicles produced, the automaker noted.

“It’s about entry-level electric mobility from Europe for Europe,” Volkswagen Group CEO Oliver Blume said in a statement. “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.”

Teaser for $22,000 Volkswagen EV for Europe debuting in 2027

The Euro-centric rhetoric hints that this project may be a reaction to an influx of Chinese-branded EVs into the European market. France in 2023 announced that it would exclude China in its EV incentives to help staunch the flow.

It will take some heavy lifting to establish a battery-manufacturing base in Europe. China, meanwhile, now makes enough batteries to supply all global EV production, according to recent Bloomberg New Energy Finance estimates.

In the U.S., the Biden administration has hiked tariffs, effective later this summer, to keep Chinese EVs out. That may help protect manufacturers, but may not be universally favored by consumers. Last week, survey results suggested that younger U.S. drivers are more open to Chinese EVs. Unlike Europe, though, no Chinese brand currently sells EVs in the U.S.

2020 Volkswagen ID 3 production at plane in Zwickau, Germany

The $22,000 EV project is just one of many VW efforts to produce a more affordable EV. The automaker has also embarked on a project for a sub-$35,000 for North America, which should arrive in the 2027 timeframe as well.

In Europe, VW also plans an “Electric Urban Car Family” with four EVs priced under 25,000 euros ($27,000) debuting in 2025. The four models include compact cars from the main VW brand and Cupra, as well as small SUVs from VW and Škoda. All four models will be built in Spain.