Volkswagen is developing its smallest, most affordable ID 1 EV starting around $20K

Volkswagen is preparing to launch its smallest, most affordable EV yet, tipped to be called ID 1, starting at around $20K. The VW ID 1 is expected to launch in 2027 and will sit below the recently revealed ID 2all concept.

VW to introduce its most affordable EV yet, the ID 1

After introducing its lowest-priced electric vehicle to date on Wednesday, the ID 2all concept with a nearly 300-mile range, VW has another trick up its sleeve.

The ID 2all “shows where we want to take the brand,” according to the CEO of Volkswagen Passenger Cars, Thomas Shafer, taking inspiration from classics like the Beetle and Golf. It will be based on the automaker’s new MEB Entry Platform, starting at less than $27,000 (€25,000).

However, VW’s latest project, deemed the ID 1, will be even cheaper, starting at around $20,000 (€17,000).

According to Autocar, the ID 1 will be the smallest, most affordable VW brand EV yet, sitting below the ID 2all, slated to be one of the 10 EVs launched by the automaker over the next three years.

The ID 1 will be similar in size to its current gas-powered Polo and could even potentially carry its name into the EV era. Shafer said:

The Polo is very successful and one of our icons, and we’re going to use that vehicle concept in the future as well.

Meanwhile, the VW leader mentioned he wasn’t sure if it would use the same name or not, similar to the VW ID Golf/ ID 2 situation.

The low-priced EV will ride on a new, unknown platform developed by the Volkswagen Group, with Skoda leading the efforts. VW initially wanted the ID 2all to start below $21,000 (€20,000) but has since adjusted the target to $27,000 (€25,000).

How VW plans to bring an affordable EV to market

Although Shafer admits “it’s not an easy game” to sell a profitable EV at that price, he says Volkswagen has several teams working to bring costs down.

A major focus for the Volkswagen Group will be on economies of scale. Shafer added:

Now we can do a lot in terms of economies of scale. Within our volume brand group, we’re producing four vehicles along with Cupra and Skoda. That volume will help us to bring prices down to be competitive and also still make money.

As one of the world’s largest automakers, Volkswagen has a vast network of manufacturing plants and other facilities to manufacture and assemble vehicles at scale, which the company believes will be an advantage as it turns its focus on an electric-only future.

The report notes that the VW ID 1 (or ID Polo) affordable EV will likely share some components with the ID 2all concept, such as a 231bhp font-mounted motor and a choice between 38kWh or 58kWh batteries, but for the price, more than likely the smaller battery.

Shafer concluded it could be hard to produce an EV at that price in Europe and that it won’t be built alongside other MEB Entry models in Spain.

Electrek’s Take

Although it’s true, VW has one of the largest automobile manufacturing networks globally, and, as many legacy automakers have found, transitioning these plants can be costly.

I don’t doubt Volkswagen is targeting an affordable EV starting around $20,000, but so are many automakers at this point. As we stated with the VW ID 2all concept, the big question will be, can it be made profitably?

There’s no doubt in my mind a $20,000 Volkswagen-brand EV would sell, and if the company is working on the project “at full steam ahead,” perhaps they are on to something.

Shafer says it’s “part of our DNA,” and the brand is committed to bringing it to market. More details will be revealed in the next few months. Stay tuned for more info.