VW ID.1 to be launched in 2027, starting price under 20,000 euros

The Volkswagen Group is not giving up on offering affordable electric vehicles.

Thomas Schaefer, who heads Volkswagen's mass-market brand, said at a press conference on Thursday that an entry-level EV called the ID.1 will be launched in 2027, with prices starting below 20,000 euros (about $21,800 based on current exchange rates).

The vehicle will be positioned in the minicar segment and will replace the current e-Up electric hatchback; VW has four design proposals for the vehicle, and Schaeffer said the adopted design will be decided in the coming weeks.

Automotive News (subscription required) reported that VW may partner with Skoda, another VW Group brand, to share development costs for the ID.1. Both parties are already working on an affordable EV for the Indian market.

Another option would be a partnership with Renault, which plans to launch an electric minicar as the next Twingo hatchback. Earlier this year, Renault unveiled the Twingo Legend, a retro styling concept that mimics the original Twingo of the 1990s, and foreshadowed possible future Twingo designs.

According to reports earlier this year, VW is interested in jointly developing a platform for affordable EVs, and Renault is one possible partner. Renault CEO Luca De Meo is also a former VW Group executive.

Prior to the launch of the ID.1, VW will launch the ID.2, a subcompact hatch. Schaefer expects the ID.2 to be available around 2026.

The ID.2 may use the Polo name in production, which was teased in last year's ID.2all concept The ID.2 is expected to cost less than 25,000 euros (about $27,200). This is roughly the same as the price of the affordable EV that Tesla plans to launch around 2025.