New VW ID.1: small electric car from 2027 for less than 20,000 euros

Volkswagen has ambitious plans: the VW ID.1, a small electric car, is to be launched on the market in 2027. It is to cost less than 20,000 euros and be developed exclusively by VW, as the Group announced at a board meeting in Wolfsburg on 28 May 2024. We take a look at the background and technical specifications of this promising vehicle.

Development and production plans

Volkswagen had originally considered entering into a co-operation with Renault in order to reduce production costs and benefit from larger quantities. However, this was not possible due to rising material and raw material costs. Nevertheless Volkswagen is sticking to its goal of offering the ID.1 for less than 20,000 euros. Group CEO Oliver Blume emphasised at the Annual General Meeting that the ID.1 will be produced in Europe, although Germany has been ruled out as a production location. Instead, production of the ID.2 will be outsourced to Group sister company Seat in Spain in order to minimise costs.

Technical specifications and design

Although Volkswagen has not yet published any detailed technical data on the ID.1, some educated guesses can be made. The ID.1 is likely to be slightly larger than the e-Up in order to provide space for larger batteries. It will probably be positioned between the e-Up and the Polo. The VW ID.1 will presumably be powered by a front-wheel drive from the MEB Small platform, similar to the ID.2.

In terms of range, the VW ID.1 could reach a maximum distance of 320 kilometres, making it a viable option for urban areas and short journeys. In terms of design, we expect a vehicle with the typical features of the ID. series, characterised by a no-nonsense and functional aesthetic.

Market launch and pricing strategy

The ID.2, a larger model, is to be launched on the market as early as 2026 for around 25,000 euros. In order to complement the lower end of Volkswagen's electric portfolio, the ID.1 will deliberately be launched a year later, in 2027. This staggering will allow VW to target different segments of the market and offer customers a broader range of electric vehicles.

With the launch of the VW ID.1, Volkswagen is planning an important step towards affordable electric mobility. Despite the challenges of cost reduction and the decision to operate without a co-operation partner, VW remains confident of bringing an attractive and cost-effective vehicle to the market. The ID.1 could therefore play an important role in the future of electric mobility and appeal to a broad customer base.