Volkswagen's ID.EVERY1 fills the last gap in electrification: an economical electric car for 20,000.

Volkswagen (VWAGY.US) launched the compact ID. EVERY1 concept car on Wednesday, priced at around 20,000 euros ($21,000), making it the cheapest electric car Volkswagen has ever sold. This model is the first Volkswagen model to use an electric architecture developed in partnership with Rivian Automotive (RIVN.US), and is expected to begin production in an undisclosed location in Europe two years from now. Volkswagen CEO Thomas Schaefer stated that the model's range will exceed 155 miles and will be the "final piece of the puzzle" in Volkswagen's next generation of models. Volkswagen has been a global automotive giant with popular and affordable models like the Beetle. Now, the German automaker has finally launched an affordable car for the electric era, aiming to compete with Chinese brands and other competitors with a cheaper option. European automakers have struggled to convince consumers to switch to electric cars due to their higher price and concerns about charging infrastructure. After a year of declining sales, Volkswagen is seeking to regain market share from its competitors with their affordable electric car models. Therefore, Volkswagen has introduced the entry-level electric car concept ID. EVERY1, demonstrating their commitment to providing affordable and flexible solutions for mobility. The design of ID. EVERY1 is sporty, with a versatile interior and rich digital features attractive to both individuals and business customers. ID. EVERY1 is part of Volkswagen's future plans, which include the launch of 9 new models by 2027, including 4 front-wheel-drive electric models based on the new Modular Electric Drive Matrix (MEB) platform. The company emphasizes that the production version of ID. EVERY1 will be the first Volkswagen model in the entire Volkswagen Group to adopt a new, especially powerful software architecture (shared with Rivian Automotive). This means that future entry-level Volkswagen cars can be equipped with new features throughout their entire lifecycle, allowing for personalization even after the purchase of a new car. Volkswagen's future plans involve providing a diverse product portfolio in the field of production models, from efficient internal combustion engine models and advanced hybrid models to future-oriented fully electric cars. Volkswagen Passenger Cars CEO Thomas Schaefer stated that ID. EVERY1 is the final model in Volkswagen's plan to offer a variety of models in the field of production cars, including affordable entry-level electric cars. Schaefer also mentioned that Volkswagen's goal is to expand its position as a global leader in mass production manufacturing by 2030. It is worth noting that ID. EVERY1 belongs to the electric city car series, along with ID. 2all and the sporty version ID. GTI Concept. ID. EVERY1 will be launched after Volkswagen's ID. 2all, which will be released next year with a starting price of 25,000 euros. Both ID. 2all and ID. EVERY1 will be among Volkswagen's first models to use lithium iron phosphate batteries, which are cheaper, have a longer lifespan, faster charging, but less adaptive to temperature fluctuations. These three models are based on the new Modular Electric Drive Matrix platform, utilizing front-wheel drive. This concept car can reach a top speed of 130 kilometers per hour, powered by a newly developed 70 kW (95 PS) electric motor. The range is at least 250 kilometers. The length of ID. EVERY1 is 3,880 millimeters, positioned between the up! (3,600 millimeters), ID. 2all (4,050 millimeters), and the current Polo (4,074 millimeters). It can accommodate four people with a luggage capacity of 305 liters. Volkswagen's future plan, known as the "Future Volkswagen" agreement, was finalized at the end of December 2024, aiming to combine leading technologies in economic stability, employment, and sustainable mobility. The plan consists of three stages: Advance, Attack, and Achieve. The Advance stage involves strengthening competitiveness and expanding the existing model range, with further previews of new electric city car series expected in the fall of 2025. The Attack stage will see the launch of 9 new models by 2027, including the production versions of ID. 2all and ID. EVERY1. In the Achieve stage, Volkswagen aims to become a leading technology mass manufacturer by 2030, with the safest, most innovative, and best-selling cars. Analyst Viewpoints Independent automotive analyst Matthias Schmidt stated, "They are introducing affordable electric cars to Volkswagen, which will allow them to compete with Chinese market participants." Volkswagen's more affordable models will not be on the market until 2025, meaning the largest European car manufacturer will face a more urgent timeframe to increase sales and meet the EU's carbon dioxide emissions targets. UBS Group AG analyst Patrick Hummel noted that this does not guarantee financial success. "In the past, in the era of combustion engines, they found it difficult to make money with small cars," Hummel said. "And for electric cars, this will be even more challenging." Volkswagen's efforts to enter the electric car market have been hampered by software failures, leading to former CEO Herbert Diess stepping down in 2022. His successor, Oliver Blume, is working to catch up with Tesla, Inc., but rising inflation has dampened consumer spending, hindering this progress. The ID. EVERY1 model is priced at 20,000 euros, and currently, the best-selling vehicles in Europe at that price are the Dacia Sandero, Renault Clio, Volkswagen Golf, Peugeot 208, and Citroen C3. Volkswagen is seeking to restore its former glory. By 2022, the Golf had been the best-selling car in Europe for 14 consecutive years. Since its launch in the mid-1970s, the Golf and the affordable Polo have sold over 57 million units.