Skip to main content
Sister Publication Links
  • Automotive News
  • Automobilwoche
  • Automotive News Canada
  • Automotive News China
Subscribe
  • Subscribe
  • Newsletters
  • Login
  • HOME
    • Latest news
    • Automakers
    • Suppliers
    • New Product
    • Environment/Emissions
    • Sales By Market
    • On The Move
    • Auto Shows
    • Munich Auto Show
    • Geneva Auto Show
    • Paris Auto Show
    • Beijing Auto Show
    • Shanghai Auto Show
  • Features
    • Long Read
    • Interview of the Month
    • Focus on Electrification
    • Focus on Technology
    • Segment Analysis
    • Cars & Concepts
    • Supplier Spotlight
    • Europe By The Numbers
  • Opinion
    • Blogs
    • Commentary
    • Guest columnists
  • Photos
    • Photo Galleries
    • Geneva Photo Gallery
    • Beijing Photo Gallery
    • Frankfurt Photo Gallery
    • Paris Photo Gallery
    • Shanghai Photo Gallery
  • Podcasts
  • Car Cutaways
  • EVENTS
    • ANE Congress
    • ANE Rising Stars
    • ANE Eurostars
  • More
    • Publishing Partners
    • Social Media
    • Contact Us
    • Media Kit
    • About Us
    • Capgemini: Invent Head on automotive takeaways from CES 2023
    • Capgemini: Securing the industry's future through a radical rethink
    • Capgemini: Succeeding with the automated driving journey through AI
    • Capgemini: The circular economy is spurring new thinking on EV batteries
    • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
    • HEXAGON: Plugging into data is the only way to make winning EVs
    • TUV Rheinland: Ideas, services and certifications for smart mobility
    • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
    • Toyota Europe
    • UFI Filters
    • Facebook
    • Instagram
    • LinkedIn
    • Twitter
MENU
Breadcrumb
  1. Home
  2. Cars & Concepts
June 13, 2022 05:56 AM

VW Group small EV family's low target price could be hit by high inflation

VW Group still aims to sell the cheapest version of its new small battery-electric car for about 20,000 euros but this may not be possible if Europe’s high inflation rate continues.

Andrea Malan
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    Cupra Urban Rebel 1.jpg

    Cupra previewed its small EV with an updated version of its UrbanRebel concept car.

    TERRAMAR, Spain -- Volkswagen Group’s target starting price of 20,000 euros ($21,226) for its new family of full-electric small cars may not be possible if Europe’s high inflation rate continues.

    The 20,000-euro price is still a target for small EV’s base version -- provided inflation does not stay at the current heated pace, the development boss of VW Group’s Cupra brand, Werner Tietz, said.

    “Inflation at 7 percent a year would be a problem,” Tietz said at a press event here.

    Automotive News Europe Congress: July 14

    2022 Automotive News Europe CongressJoin us in Prague for a comprehensive series of keynote addresses, top-level presentations and panel discussions focused on Managing Disruption While Planning For The Future. Register today to hear from experts from Mercedes-Benz, Hyundai Motor Europe, Toyota Motor Europe, Stellantis Group, Polestar and more!

    Learn more & register

    The Eurozone’s annual inflation rate for May is expected to be 8.1 percent, up from 7.4 percent in April according to Eurostat, the European Union’s statistical office.

    VW Group plans to launch a new range of battery-electric cars for its VW, Skoda and Cupra brands in 2025.

    Cupra previewed its small EV with an updated version of the UrbanRebel, a concept car first shown at the 2021 Munich auto show.

    Tietz said the latest concept is “very similar” to the final version which will launch in 2025.

    The Spanish plant of Seat and Cupra, in Martorell near Barcelona, will build the Cupra EV alongside a VW brand model, potentially named the ID2, and a Skoda version. There will be no Seat version.

    The three models will share the same underpinnings: a shortened version of the VW Group’s MEB electric platform.

    The 20,000-euros price target for the small EV has long been VW Group’s ambition.

    Last September, VW brand CEO Ralf Brandstaetter said the automaker expected the scaling of MEB platform to include small cars and resulting cost savings was the "the key to entering 20,000-euro pricing segment."

    He said the target price for the VW-branded small EV would be “between 20,000 and 25,000 euros.”

    Under VW Group’s current pricing structure, the VW-brand small EV likely would be priced in the middle of the small EV family, with Skoda’s version likely to be the cheapest.

    Cupra’s version would be sportier than those form the other two brands, allowing for it to be priced higher.

    Share
    Cupra Urban Rebel

    The UrbanRebel concept will inspire the design of a new Cupra small EV.

    Share
    Share
    Share
    Share
    Share
    Share
    Cupra Urban Rebel

    Cupra’s small EV will be the future entry point to the brand, helping it to reach its goal of acheiving 500,000 annual sales by 2025, up from 79,327 units in 2021.

    “This is the model that will democratize urban electric mobility,” Cupra CEO Wayne Griffiths during the event in Terramar.

    Here is what might help VW keep production costs relatively low for the three small EVs:

    • Costs in Spain are lower than in Zwickau, Germany where Cupra’s full-electric compact car is built, alongside the VW ID3 and Audi Q4 e-tron sister models.
    • Cupra engineers are carrying development work in Spain for the whole small EV family.

    Both Griffiths and Tietz said VW Group’s electric car and battery programs in Spain hinge on the success of the PERTE electric mobility program.

    PERTE is a Spanish acronym for Strategic Projects for Economic Recovery and Transformation that includes 4.3 billion euros of public investments between 2021 and 2023.

    The program includes state aid to Seat and suppliers to produce electric cars in Martorell and for a battery factory that VW Group plans to build in Valencia.

    Related Article
    VW's Cupra brand aims for 500,000 sales by 2025
    VW cools on ID Life entry EV's retro look

    VW Group and its suppliers have applied for the funds and a final decision should be taken by the end of the year, Tietz said.

    The production UrbanRebel will be 4030-mm long, similar in size to full-electric small cars from rivals.

    The Peugeot e-208, for example, is 4055 mm long.

    The UrbanRebel production car will be offered with two different battery technologies. The base version will have a lithium iron phosphate battery, a cheaper battery technology, to keep costs as low as possible. The higher performance model will use a nickel-manganese-cobalt battery.

    VW Group has not said which battery type will be produced in the Valencia factory in Valencia. It is likely to be lithium iron phosphate batteries to minimize the entry price for the small EVs

    The UrbanRebel production car’s 166-kilowatt electric motor will allow the highest performance version to accelerate from 0 to 100 kph (62 mph) in 6.9 seconds.

    The longest-range version will have a maximum range of 440 km. The EV will be offered with DC charging capacity up to 120 kilowatt-hours, Tietz said.

    “This will be the biggest project for our company in the upcoming years, since it is key for our transformation to become a fully electric brand," Tietz said.

    Tietz said UrbanRebel may not be the final name of Cupra’s small EV.

    CARS & CONCEPTS: Sign up for this multipurpose newsletter that covers the biggest moves in Europe’s product market.
    RECOMMENDED FOR YOU
    Audi Activesphere combines mixed reality interior with a pickup
    Recommended for You
    Audi Activesphere concept
    Audi Activesphere combines mixed reality interior with a pickup
    ALFAJAPAN-MAIN_i.jpg
    Alfa Romeo plans large E-segment vehicle for U.S. expansion by 2027
    395178940.jpg
    Ferrari's electric supercars will rev up with sound of engines, patent shows
    Capgemini Invent Head on automotive takeaways from CES 2023
    Sponsored Content: Capgemini Invent Head on automotive takeaways from CES 2023
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Get Free Newsletters

    Sign up and get the best of Automotive News Europe delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    SUBSCRIBE TODAY

    Get 24/7 access to in-depth, authoritative coverage of the auto industry from a global team of reporters and editors covering the news that’s vital to your business.

    SUBSCRIBE NOW
    Connect with Us
    • Twitter
    • Facebook
    • LinkedIn
    • Instagram

    Founded in 1996, Automotive News Europe is the preferred information source for decision-makers and opinion leaders operating in Europe.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI  48207-2997
    Tel: +1 877-812-1584

    Email Us

    ISSN 2643-6590 (print)
    ISSN 2643-6604 (online)

     

    Resources
    • About us
    • Contact Us
    • Advertise with us
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Awards
    • Rising Stars
    • Eurostars
    • Leading Women
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Automotive News Europe
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • HOME
      • Latest news
      • Automakers
      • Suppliers
      • New Product
      • Environment/Emissions
      • Sales By Market
      • On The Move
      • Auto Shows
        • Munich Auto Show
        • Geneva Auto Show
        • Paris Auto Show
        • Beijing Auto Show
        • Shanghai Auto Show
    • Features
      • Long Read
      • Interview of the Month
      • Focus on Electrification
      • Focus on Technology
      • Segment Analysis
      • Cars & Concepts
      • Supplier Spotlight
      • Europe By The Numbers
    • Opinion
      • Blogs
      • Commentary
      • Guest columnists
    • Photos
      • Photo Galleries
      • Geneva Photo Gallery
      • Beijing Photo Gallery
      • Frankfurt Photo Gallery
      • Paris Photo Gallery
      • Shanghai Photo Gallery
    • Podcasts
    • Car Cutaways
    • EVENTS
      • ANE Congress
      • ANE Rising Stars
      • ANE Eurostars
    • More
      • Publishing Partners
        • Capgemini: Invent Head on automotive takeaways from CES 2023
        • Capgemini: Securing the industry's future through a radical rethink
        • Capgemini: Succeeding with the automated driving journey through AI
        • Capgemini: The circular economy is spurring new thinking on EV batteries
        • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
        • HEXAGON: Plugging into data is the only way to make winning EVs
        • TUV Rheinland: Ideas, services and certifications for smart mobility
        • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
        • Toyota Europe
        • UFI Filters
      • Social Media
        • Facebook
        • Instagram
        • LinkedIn
        • Twitter
      • Contact Us
      • Media Kit
      • About Us