Volkswagen has been struggling with falling sales in Europe and China, leading to plant closures in Germany. However, unlike other European automakers focusing on high-end electric vehicles (EVs), VW remains committed to affordable EVs, including in the U.S. This effort starts with the ID.2, Volkswagen’s most budget-friendly EV yet.
The ID.2, set to launch by late 2025 or early 2026, was first introduced as the ID.2all concept last year, promising prices under $27,000. According to Kai Grünitz, VW’s head of tech development, the vehicle will be “spacious as a Golf” and “affordable as a Polo,” with an estimated range of up to 279 miles on a full charge.
The design nods to VW’s classic models, featuring interior elements inspired by the Beetle and Golf. A more rugged ID.2 SUV and a sporty GTI version are expected to debut in September 2025.
Volkswagen’s push for affordability doesn’t stop there. CEO Larry Blume has hinted at a sub-$22,000 EV after 2025, with the brand planning to release eight new affordable EVs by 2027. To cut costs, VW is developing its own battery cells at plants in Europe and Canada, tackling one of the biggest challenges in making EVs cheaper.
Affordability has become a key focus for VW, especially as Chinese-made EVs—known for their low prices—face heavy tariffs in North America and Europe. Few automakers seem eager to compete in this space. General Motors has introduced the Chevy Equinox EV starting at $27,500 with tax credits, while Tesla’s Elon Musk has ruled out producing a $25,000 model anytime soon.
With a focus on innovation, nostalgia, and competitive pricing, Volkswagen’s strategy could make it a leader in the affordable EV market.
