Volkswagen planning to launch £17,000 compact EV in 2027

Volkswagen has confirmed its commitment to introduce more affordable electric models to the European market.

The automotive group plans to debut a new vehicle in 2027 with a price point close to £17,000.

It plans to develop and build the car in Europe, in a bid to compete with the rise of Chinese models entering the market.

Volkswagen Group CEO Oliver Blume said: "Generations of people associate the strong brands of the Volkswagen Group with their first car – and with affordable mobility. As a group with strong brands, we continue to assume this social responsibility to this day. That's why I'm very pleased that we're launching a future-oriented project.

"It’s about entry-level electric mobility from Europe for Europe. In doing so, we combine a clear commitment to Europe as an industrial location, a European industrial policy and ultimately act in the interests of European customers."

The new car will sit beneath the group's forthcoming compact EV, which will launch in 2025 as the Cupra Raval and VW ID2.

Thomas Schäfer, CEO of the Volkswagen brand and head of the Brand Group Core: “The future is electric. In order for electromobility to become widespread, attractive vehicles are needed, especially in the entry-level segment. Our brand promise is: electromobility for all. This promise is now being fulfilled in the Brand Group Core. Despite the attractive price, our vehicles will set standards in the entry-level segment in terms of technology, design, quality, and customer experience. This task has become more demanding due to rising energy, material, and raw material costs. One thing is clear: electromobility from Europe for Europe can only succeed with political support and competitive framework conditions.”

Renault and Volkswagen were reported to be discussing a platform sharing arrangement to deliver a new compact electric model for both brands but talks broke down a week ago.