German auto giant Volkswagen on Wednesday unveiled a new budget electric vehicle, as the competition in the EV sector revs up.
The ID. 2all models, with front-wheel drive and a range of up to 450 kilometers (280 miles), will be priced under US$26,300 when it hits the European market in 2025, the manufacturer said.
It is one of 10 new electric models the company plans to roll out by 2026 as it sharply boosts investment in electrification and digitisation.
Volkswagen said the new models would give it “the widest range of electric vehicles compared with its competitors” with the aim “to achieve an electric car share of 80 percent in Europe”.
“We are implementing the transformation at pace to bring electric mobility to the masses,” VW Passenger Cars CEO Thomas Schaefer said in a statement.
Thomas Schmall, a member of VW’s board of directors, said the company was confident it could maintain the low price point through “economies of scale” achieved with high sales volume.
Volkswagen had said on Tuesday it would invest 122 billion euros in the shift towards electric vehicles over the coming years. “As early as 2025, every fifth vehicle sold worldwide is expected to be one with an all-electric drive,” the group said.
VW said “a major reason” for the spending increase was its push to build a series of battery factories, as well as expenses linked to securing raw materials for batteries.
It plans to focus its spending efforts over the coming years on “growing its presence in the North America region”.
The company also wants to increase its competitiveness in key market China, where it has fallen behind US rival Tesla and local manufacturers of electric cars. In 2022, battery-powered cars accounted for a record seven percent of the VW group’s deliveries, amounting to just over 572,000 units globally.
VW expects EVs to make up around 10 percent of its car sales in 2023.