VLKAF - Volkswagen aims to be the global leader in cheap electric vehicles

2023-03-21 07:25:30 ET

Volkswagen AG ( OTCPK:VLKAF ) created ripples in the automobile industry by announcing that it plans to launch an electric vehicle for less than €20K ($21.6K). The new model called the ID.1 is being slated to arrive as early as 2026-2027.

Last week, the German automaker showed off the ID. 2all, which will cost around €25,000 and arrive sometime in 2025.

Volkswagen previewed that the ID. 2all will feature front-wheel drive, range of up to 450 km, and innovative technological features such as Travel Assist, IQ.LIGHT or Electric Vehicle Route Planner and a new Volkswagen design language. The production version will be based on the MEB Entry platform and is scheduled to be one of ten new electric models that Volkswagen will launch by 2026. Volkswagen has the new ID.3, the ID. Buzz with long wheelbase and the ID.7 all rolling out in 2023.

Competitor Tesla ( TSLA ) has teased details on a new electric vehicle model priced for the mass market, but the timing is uncertain. Fisker ( FSR ) is adding the Pear crossover to its lineup in 2024 at a starting price just below $30K. Meanwhile, Japanese automakers Nio ( NIO ), Li Auto ( LI ), and XPeng ( XPEV ) are looking to broaden their global reach with their cheaper EV models. General Motors ( GM ) plans to add more sub-$30K electric vehicles to join the Chevy Bolt in its mass market lineup.

Overall, Volkswagen ( OTCPK:VLKAF ) is targeting over $190B in EV and tech investments as part of the automaker's transition.

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