Europe's top car manufacturer Volkswagen on Monday presented a series of more affordable electric vehicles to take on fast-growing Chinese rivals as Germany's troubled auto sector seeks to turn around its fortunes.
Volkswagen is presenting four electric cars in the small car and compact segment, among other things. These cars are expected to be comparatively inexpensive with the entry-level model ID.Every1 costing around €20,000, VW announced on Monday. New combustion engine models are also being presented.
The new model range has been realigned with VW's “core values,” the company explained. These values are “clean design with high recognition value, high quality, attractive price-performance ratio, intuitive usability, and innovative technologies.” Brand chief Thomas Schäfer said that VW wants to establish itself as a “technologically leading volume manufacturer” by 2030.
Their commercial launch is set for 2026, VW said in a statement, and is part of efforts to combat Chinese carmakers which are gaining market share in Europe with their own affordable EVs. Volkswagen says it has made considerable cost savings on the cars by sharing technology across the different models. The 10-brand German group's medium-term aim is to achieve a 20 percent market share in the small electric car segment in Europe.
"The new model family brings premium technology to a class that represents the entry point into electric mobility for many people," said VW. It is a tough task for the Germans to take on the Chinese, however. At the same time, VW is reflecting on the past with its new models: the ID.2 is being presented as the ID.Polo, and there is also a sporty ID.Polo.GTI.
In Munich on Monday, Chinese EV giant BYD announced that its Dolphin Surf electric compact car, already on sale in Europe since May for around 20,000 euros, will be produced from the end of 2025 in its future Hungarian factory. This means it will avoid hefty tariffs that the EU has slapped on Chinese-made EVs over what Brussels says are unfair state subsidies.
Germany's top automakers, VW, along with BMW and Mercedes-Benz, have all suffered in recent times due to weak demand and fierce competition in key market China, where BYD and others have eroded their sales. They have struggled with the shift to EVs as demand has proven weaker in Europe than many had anticipated, and prices have remained too high for many motorists.
German manufacturers BMW and Mercedes are also showcasing new electric models at the IAA. At the same time, several company bosses criticized the planned ban on combustion engines for new cars in the EU in 2035 on Monday before the official start of the trade fair. This is “unrealistic,” said VW boss Oliver Blume in Munich. Decarbonization is the goal, but politicians should not strangle the industry, “it's also about jobs.”
Jean-Philippe Imparato, European CEO of Opel's parent company Stellantis, said in Munich that the 2035 deadline was “unachievable.” The EU must change the requirements before the end of the year, he said.
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