German auto giant Volkswagen unveiled a new budget electric vehicle on Wednesday amid increasing competition in the electric vehicle sector.
The ID The 2all model with front-wheel drive and a range of up to 450 kilometers should come onto the European market in 2025 for less than 25,000 euros, the manufacturer said.
It’s one of 10 new electric models the company plans to launch by 2026 as it gives a strong boost to investments in electrification and digitalization.
Volkswagen said the new models would offer it “the widest range of electric vehicles compared to its competitors” with the goal of “achieving 80 percent electric car share in Europe”.
“We are implementing the transformation at speed in order to bring electromobility to the masses,” said VW passenger car boss Thomas Schäfer in a statement.
VW board member Thomas Schmall said the company is confident it can maintain the low price through “economies of scale” with high sales volume.
Volkswagen announced on Tuesday that it would invest 122 billion euros in the transition to electric vehicles in the coming years.
“By 2025, every fifth vehicle sold worldwide should be a purely electric drive,” says the group.
VW said “a key reason” for the increase in spending is the push to build a series of battery factories, as well as the costs associated with securing raw materials for batteries.
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It plans to focus its spending efforts in the coming years on “expanding its presence in the North America region.”
The company also wants to increase its competitiveness in the key market of China, where it has fallen behind US rivals Tesla and local electric car makers.
In 2022, battery-powered cars accounted for a record-breaking seven percent of VW Group deliveries, equivalent to just over 572,000 units worldwide.
VW expects EVs to account for around 10 percent of its car sales in 2023.
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