Volkswagen Group has announced that it will make all-electric entry-level mobility widespread across Europe, with affordable EVs made in the continent, for the European market.

The carmaker is planning a world premiere of the €20,000 EV in 2027 to “create mobility for all and continue to facilitate the entry into e-mobility”.

VW new EV europe

VW Group’s new European EV will be affordable in an aim to create mobility for all

Europe is the key driver of VW Group’s electrification strategy, with its Wolfsburg plant in Germany at the centre. In its financial results for the first three months of 2024, the carmaker said its order bank for vehicles in Western Europe has remained stable at a high level of 1.1m units, including 160,000 BEVs. In 2023, Europe saw an increase of 61% to 341,100 BEVs delivered.

The OEM is already planning to make electromobility widespread in Europe with its Electric Urban Car Family project, which will see EVs being sold for under €25,000 ($27,100) by the end of 2025. These plans include four models; two compact cars from VW and Cupra, and two small SUVs from Skoda and VW, all of which will be built in Spain, VW’s electric vehicle hub in Europe.

VW Group announced in July last year that it is building new battery production capabilities in Valencia and at the Seat headquarters in Martorell to support further EV production in the region. Seat S.A. president Wayne Griffiths said at the time that the company applied to the Battery PERTE VEC, part of Spain’s Strategic Projects for Economic Recovery and Transformation (PERTES) programme for the Martorell project, which the carmaker pledged a €300m investment in.

The Martorell facility will cover around 64,000sq.m and be connected to production hall 10, where EVs including the Cupra Raval will be manufactured. Construction is planned to be completed in 2025.

The carmaker’s gigafactory in Valencia, Spain is expected to begin production in 2026, with an annual production capacity of 40 Gigawatt-hours (GWh). It will supply the vehicle plant in Pamploma, and VW’s battery division PowerCo has opened its own branch in the centre of Valencia to coordinate Spanish activities.

Speaking about the new affordable EV strategy, Oliver Blume, CEO, VW Group said the electrification project is “about entry-level electric mobility from Europe to Europe,”. He said the project combines a ”clear commitment to Europe as an industrial location, a European industrial policy and ultimately act in the interests of European customers”.

Thomas Schäfer, head of Brand Group Core and CEO of the VW brand said: “Despite the attractive price, our vehicles will set standards in the entry-level segment in terms of technology, design, quality and customer experience. This task has become more demanding due to rising energy, material and raw material costs. One thing is clear: electromobility from Europe for Europe can only succeed with political support and competitive framework conditions.”