Volkswagen Doubles Down On Sub-$35k Electric Car Promise, But The Wait Might Be Long

Volkswagen launched its first U.S.-bound EV, the Volkswagen ID.4, in 2021 for just under $40,000. Now, it's on a mission to come up with another vehicle with an even lower price tag. According to Reuters, the German auto major company wants to introduce an affordable sub-$35k EV in the next few years, allowing it to compete with its rivals, many of whom are also planning to launch similarly priced EVs in the U.S.

Volkswagen's ambitious plans for an affordable EV were revealed by Reinhard Fischer, the Head of Strategy at VW Group America, who spoke at the Reuters Events Mobile Automotive USA 2023 conference. According to Fischer, the company is currently exploring the possibility of bringing this sub-$35K electric car to consumers in the next 3-4 years, indirectly hinting at a possible 2026 or 2027 timeline for the actual product launch.

Fischer went on to add that the company's planned sub $35k EV would be manufactured at its plants either in the U.S. or Mexico. For those unaware, the company has two production facilities in North America: one in Chattanooga, Tennessee, and the second in Puebla, Mexico. A third plant is planned in South America, which will primarily cater to Volkswagen's subsidiary Scout.

Interestingly, Volkswagen's decision to double down on its commitment to the EV space in the U.S. comes at a time when other players like GM and Ford have scaled back EV-focused investment in the country.

Given that we still have several years to go before this interesting car makes it into production, we know precious little about it. However, it is pertinent to note that the company already sells a car in the U.S. market that is pretty close to that price tag. The model in question is the 2023 Volkswagen ID.4, which starts at $38,995 for the Standard Trim.

With a decent list of features and a claimed 209-mile range, the ID.4 Standard is not a bad option at all. The car is available in seven other trims — all priced well above the $40,000 mark. Volkswagen's ambitious affordable EV may also feature locally made battery packs, enabling them to qualify for the IRA tax credit of up to $7,500, which could mean that the car may end up costing as little as $27,000.

Volkswagen's renewed efforts in the EV space seem to be one of the many ways the company is trying to make up for its late entry into the EV party. The first production-ready EV from the company was the Volkswagen ID.3, which launched in 2020. The company's entry into the U.S. EV market came a year later — in 2021 — with the official launch of the Volkswagen ID.4. The ID.4's U.S. ambitions received a boost in 2022 when the company started producing the 2023 ID.4 at its factory in Chattanooga, Tennessee.

The company has many other electric vehicles for the U.S. market in the pipeline, including the Volkswagen ID Buzz — a three-row electric minibus, and the flagship ID.7 sedan.