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. Focus on Electrification
March 11, 2021 12:00 AM

VW Group will launch Polo-sized EVs, Diess says

Automaker accelerates plans for small battery-powered cars

Andrea Malan
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    VW logo distorted.jpg
    Bloomberg


     

    Volkswagen Group is redoubling its efforts to launch small battery-powered cars in Europe, where the segment is expected to boom in the coming years as more competitors start to offer entry-level EVs.

    The automaker will launch full-electric cars about the size of the VW Polo small-segment car starting in 2025, VW Group CEO Herbert Diess said.

    The cars will be offered by various group brands, Diess told reporters during the automaker's annual press conference on March 16. By that time battery cell technology should be advanced enough for the cars to be sold at an attractive price for entry-level buyers, Diess said.

    There is a growing emphasis on small EVs because the cost to add fuel-saving technologies such as hybrid powertrains to entry-level combustion engine models to comply with the European Union's tougher CO2 emissions rules is making them unprofitable. Automakers are either quitting the small and minicar segments or launching full-electric models.

    VW brand boss Ralf Brandstaetter told reporters on March 5 that VW Group, with its multiple brands, has the scale needed to succeed in the small EV sector. 

    VW brand plans to launch a small EV in 2025 priced between 20,000 euros ($24,000) to 25,000 euros, Brandstaetter said. The car will be positioned below the ID3 compact hatchback that went on sale in Europe last September.

    Cupra EVs

    Brandstaetter's comments came after VW Group's Seat unit said it aims to launch a small EV under its Cupra brand.

    The model would be positioned below Cupra's first battery-electric car, the Born compact hatchback that will go into production in the second half at VW Group's plant in Zwickau, Germany. The factory currently builds the ID3 and the VW ID4 crossover.

    "For us, the next big game changer for the volume brands is urban electric vehicles, and we aim to play a key role in it, with a special focus on our objective of electrifying Spain," a Seat spokesman told Automotive News Europe.

    A small EV priced between 20,000 and 25,000 euros "is in principle conceivable for several group brands," the spokesman said.

    No decision has been made on the production location or launch date for the model, and it is unclear whether Seat would also get a version of the small EV.

    Brandstaetter declined to comment on where the small EVs will be built when asked by reporters. "There are different scenarios. An announcement will be made later," he said.

    The small EVs would use a shortened version of VW Group's MEB electric-only architecture known as "MEB Entry."

    VW brand's small EVs could be a hatchback badged the ID1 and a crossover called the ID2, sources told Automotive News Europe sister publication Automobilwoche. VW disclosed plans for the ID1 and ID2 entry-level EVs in a presentation to investors on Dec. 4, without giving additional details.

    FOCUS ON ELECTRIFICATION NEWSLETTER: A monthly wrap-up of the latest electric vehicle news, including interviews and global EV sales data, delivered to your inbox.
    Spain EV hub

    Seat's plant in Martorell, near Barcelona, is emerging as the leading candidate to produce the VW Group’s small EVs.

    VW Group CEO Herbert Diess said in a LinkedIn post on Sunday that the automaker plans to turn Cupra into a full-electric brand and exclusively make battery-powered cars at Martorell.

    But the decision depends on EU financial support for an EV battery plant in Spain, Diess said.

    It's not known whether Audi and Skoda would also launch versions of the VW and Cupra small EVs.

    VW Group currently sells full-electric versions of its VW Up, Seat Mii und Skoda Citigo minicars built in Bratislava, Slovakia, but the cars will not be replaced because they are costly conversions of a combustion-engine architecture.

    VW disclosed plans for ID1 and ID2 entry-level EVs in an investors’ presentation on Dec. 4.

    Rivals' plans

    If VW Group sticks to the 2025 launch date for its first small EV, it will arrive later than many rivals.

    Renault CEO Luca de Meo has said that by 2023 the automaker will launch a small "affordable" battery-powered car with a retro design inspired by the Renault 5.

    Renault currently sells an electric version of its Twingo minicar and the Zoe small EV, which was Europe’s top-selling battery-powered car last year.

    Fiat last year launched the New 500, a battery-powered car based on its 500 combustion engine hatchback.

    The battery-powered Honda e was introduced in Europe last year.

    PSA sells full-electric versions of the Peugeot 208 and Opel/Vauxhall Corsa small hatchbacks, the Opel/Vauxhall Corsa-e and Peugeot e-208.

    Ford has axed its Ka minicar in Europe and Opel has dropped its Adam and Karl minicars because of the relatively high CO2 emissions from their combustion engines. Ford has said it will only sell full-electric cars in Europe by 2030 and plans to convert its plant in Cologne, Germany, to produce EVs based on VW Group’s MEB architecture.

    Hyundai and Kia, two strong competitors in the minicar segment with the i10 and Picanto, have different timetables for electrifying their offerings.

    Kia is developing an electric minicar similar in size to its Picanto, the automaker's Europe chief operating officer, Emilio Herrera told Automotive News Europe in January. Hyundai is studying whether it needs an electric minicar but such a vehicle is not currently part of its plans, the brand's CEO for Europe, Michael Cole, told Automotive News Europe, also in January.

    RECOMMENDED FOR YOU
    Land Rover Range Rover: Adding 3rd row no simple matter
    Recommended for You
    Range Rover THREE ROW-MAIN_i.jpg
    Land Rover Range Rover: Adding 3rd row no simple matter
    RANGEROVER-MAIN_i.gif
    Land Rover unwraps next Range Rover SV
    Mercedes EQXX prototype 2021
    Mercedes teases EQXX coupe-styled electric sedan
    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