German automobile manufacturer Volkswagen is reportedly working on a pocket-friendly entry-level electric vehicle that could be the successor to the VW e-Up city car. According to emerging media reports, the new entry-level electric car will likely be called the ID.1, a younger, more affordable sibling to ID.2all. the new electric model’s name is yet to be finalized, but it is most probably be positioned below the ID. 2all concept.
The planned electric car’s main appeal would be its low price. As per reports published on TopNews earlier, the ID.1 will be really affordable as it will enter the market with a starting price tag of under £17,000 (approx. $22,000). For reference, the production version of the VW ID. 2all concept, which was previewed by the brand early this year, has a sub €25,000 (approx. $27,200) price tag.
The German automaker has plans to rationalize costs of the all-electric model through platform sharing. In simple words, the entry-level electric hatchback in question and its potential cousins from sister brands like Skoda and Cupra might ride on the same bespoke architecture. While details about the upcoming electric hatchback’s platform haven’t been revealed yet, reports suggest that the platform would be different from Modular Electric Drive Matrix (MEB) architecture.
The VW ID.2 will have the same platform that will underpin the Cupra Raval and Skoda’s small electric SUV, all of which are scheduled to enter series production sometime in the year of 2025, at SEAT’s Martorell production plant near Barcelona in Spain.
Arno Antlitz, Chief Financial Officer (CFO) of Volkswagen Group, attributed the manufacturer’s ability to produce more affordable EVs to advancements in battery technologies and low-cost production methods. It is worth-noting here that battery packs account for nearly 30 to 40 per cent of the price of an EV.
On top of that, Antlitz stated that the production version of the all-electric ID.2all concept will get unified battery cells from the group’s Spain-based new PowerCo facility. The batter cell production facility is currently under construction in Sagunto, nearly eighteen miles north of Valencia. The €3 billion (roughly $3.3 billion) battery cell facility, which will reportedly have 40-GWh annual capacity, is expected to start production in 2026.
It remains unclear which markets of the world will receive the VW ID.1, but the U.S. market will most probably not get it, simply because Americans love to drive bigger SUVs and pickup trucks.