Volkswagen Unveils First Glimpse of Affordable €20,000 Electric Car Below the ID.2 – Launch Expected in 2027
Volkswagen has officially revealed the first teaser image of its upcoming budget-friendly electric vehicle positioned below the Volkswagen ID.2. The German carmaker is planning a massive push into affordable EV mobility, with no fewer than nine all-new electric models set to arrive by 2027.
While the Volkswagen ID.2 was initially slated for launch in 2025, the timeline has shifted. Due to internal restructuring in Germany, platform selection challenges, and strategic production changes, the compact EV will now debut in 2026 — around a year later than planned. After much debate between using the MEB platform or the next-generation SSP, Volkswagen has confirmed the ID.2 will ride on an updated MEB Evo architecture, offering improved efficiency and performance.
A €20,000 Electric Car for the Masses
The biggest news: Volkswagen will introduce an even smaller, more affordable EV — unofficially dubbed the Volkswagen ID.1 — with a starting price of just €20,000. Slated for 2027, this all-electric city car will compete directly with the next-generation Renault Twingo, while the ID.2 will challenge the Renault 5. Volkswagen plans to showcase a concept version of this entry-level EV later this year.
Currently, few major European automakers have committed to developing segment A electric vehicles outside of Renault and Chinese brands, making VW’s announcement significant for the future of urban electric mobility.
Volkswagen’s Production Strategy
To make room for its new EV lineup, Volkswagen is reorganizing production in Germany. The Wolfsburg factory will take center stage, with Golf production moving to Mexico to free up space for next-generation EV assembly. The new Hall 54 will host advanced manufacturing processes for the next-generation electric Golf and the high-volume T-Roc EV, both built on the new SSP platform.
Volkswagen states: “Wolfsburg will become the capital of our new compact, fully electric category.” This confirms for the first time that a Volkswagen T-Roc EV is in the pipeline — a major addition to its electrified SUV lineup.
By focusing on affordability, innovation, and scalable production, Volkswagen aims to democratize EV ownership across Europe and beyond. With an expanding lineup from entry-level city cars to premium SUVs, the brand is positioning itself to compete head-on with both European and Asian rivals in the electric age.
