Volkswagen’s affordable ID.2 EV remains on track

By Nick Godt Published November 24, 2024

vw id2 volkswagen affordable ev 1 — Image used with permission by copyright holder

It’s no secret that Volkswagen has been facing a huge slump in sales in Europe and China, forcing it to close plants in Germany.

But unlike other European automakers who have stuck to producing high-end electric vehicles (EVs), the German automaker keeps on reaffirming its commitment to bringing affordable EVs to market, including in the U.S.

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And that commitment starts with VW’s most affordable EV model to date, the ID.2. Volkswagen remains committed to launching the EV by the end of 2025 or early 2026, Kai Grünitz, head of tech development, told Autocars at the Los Angeles Auto Show.

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Last year, the automaker launched the ID.2all concept, promising an entry-level EV with prices starting under $27,000.

For long-time VW fans, the EV is being promoted as being “spacious as a Golf” and “affordable as a Polo.” It’s also expected to allow up to 279 miles on a full battery.

The design and the interior of the ID.2 promises a trip down memory lane, including driver displays straight out of the VW Beetle and Golf eras.

In addition, an ID.2 SUV is slated to be unveiled in September 2025, while a GTI version is also being developed.

Meanwhile, it’s clear that Volkswagen wants to hammer in that “affordable” is the keyword for its EV strategy. VW CEO Larry Blume has also hinted at a sub-$22,000 EV to be released after 2025. All in all, the automaker says it’s planning to release eight new affordable EVs by 2027.

The price of batteries is one of the main hurdles to reducing EV production costs and lowering sale prices. To that end, VW is developing its own unified battery cell in several European plants, as well as one plant in Ontario, Canada.

Yet, now that Chinese-made EVs, known as global leaders in terms of affordability, are facing 100% tariffs both in North America and Europe, only a few automakers seem to be interested in selling ever-cheaper EVs in the U.S.

General Motors has already put out its Chevy Equinox EV at a price of $27,500, including federal tax credits.

Meanwhile, Tesla CEO Elon Musk has recently put a floor on expectations for a regular Tesla model ever selling for $25,000.

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Freelance reporter

Nick Godt has covered global business news on three continents for over 25 years.

Cars

Robotaxi aside, a $25,000 EV would be pointless, Tesla CEO says

Blue Tesla Model 3 Highland on the road

Enthusiasts expecting to one day put their hands on the steering wheel of a $25,000 Tesla EV may feel like they’ve been taken for a ride.
CEO Elon Musk has just put a serious damper on those expectations, saying that outside of the driverless Robotaxi recently unveiled by Tesla, a regular $25,000 model would be “pointless” and “silly.”
During a conference call with investors, Musk was asked to clarify whether such a model was in the works.
"Basically, having a regular $25K model is pointless,” Musk said. “It would be silly. It would be completely at odds with what we believe." Tesla, Musk continued, has “been very clear that the future is autonomous.”
On October 10, Tesla unveiled its much-awaited robotaxi, called the Cybercab, an autonomous-driving EV with no steering wheel or pedals. The company also unveiled the Robovan, a much larger autonomous vehicle expected to carry people or goods.
The automaker said the Cybercab is expected to be produced in 2026 and cost $30,000. Musk, meanwhile, said that it would be a $25,000 car without specifying if that price tag included federal tax credits.
Tesla’s ambiguity about an affordable entry-level model has been going on for years. In 2020, Musk signaled that a $25,000 Tesla would arrive within three years. It was later reported that Tesla had ditched the idea, instead favoring the development of a robotaxi.
Language within Tesla’s latest financial report still hints that new affordable Tesla models are on the way. But Musk’s latest comments are putting a floor on just how affordable these would be. So far, Tesla’s Model 3 Rear-Wheel-Drive remains the company’s cheapest model, with a base price of $38,990.
Some rival EV makers, meanwhile, are entering the affordable space more aggressively in the U.S.
General Motors has already put out its Chevy Equinox EV at a price of $27,500, including federal tax credits. Volkswagen America says it plans to release an under-$35,000 EV in the U.S. by 2027.

Cars

Volkswagen plans 8 new affordable EVs by 2027, report says

volkswagen affordable evs 2027 id 2all

Back in the early 1970s, when soaring oil prices stifled consumer demand for gas-powered vehicles, Volkswagen took a bet on a battery system that would power its first-ever electric concept vehicle, the Elektro Bus.
Now that the German automaker is facing a huge slump in sales in Europe and China, it’s again turning to affordable electric vehicles to save the day.Volkswagen brand chief Thomas Schaefer told German media that the company plans to bring eight new affordable EVs to market by 2027."We have to produce our vehicles profitably and put them on the road at affordable prices," he is quoted as saying.
One of the models will be the ID.2all hatchback, the development of which is currently being expedited to 36 months from its previous 50-month schedule. Last year, VW unveiled the ID.2all concept, promising to give it a price tag of under 25,000 euros ($27,000) for its planned release in 2025.VW CEO Larry Blume has also hinted at a sub-$22,000 EV to be released after 2025.It’s unclear which models would reach U.S. shores. Last year, VW America said it planned to release an under-$35,000 EV in the U.S. by 2027.The price of batteries is one of the main hurdles to reduced EV’s production costs and lower sale prices. VW is developing its own unified battery cell in several European plants, as well as one plant in Ontario, Canada.But in order for would-be U.S. buyers to obtain the Inflation Reduction Act's $7,500 tax credit on the purchase of an EV, the vehicle and its components, including the battery, must be produced at least in part domestically.VW already has a plant in Chattanooga, Tennesse, and is planning a new plant in South Carolina. But it’s unclear whether its new unified battery cells would be built or assembled there.

Cars

Volkswagen ID.4 vs Tesla Model Y

volkswagen id4 vs tesla model y 2021 id 4 blue charging

The electric car world is seriously heating up, with a number of high-end electric crossovers now available, albeit still at a higher price than comparable gas-powered cars. The Tesla Model Y is one of the first of these, offering the Tesla design, a high-tech software experience, and more. But another one of the older of these models is the Volkswagen ID.4, which was first released in 2021 and also offers among the better electric car experiences out there.

Can the ID.4 compete with one of the best-selling electric cars out there? We put the two head-to-head to find out.
Design
The first thing to compare between these two cars is design, and they take a slightly different approach.

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