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Volkswagen targets world’s cheapest electric vehicle

Volkswagen is reportedly developing a new mass-market electric car with a lower price than rivals, aiming to outdo Tesla and Chevrolet on affordability.

By Editorial Desk Updated
Silver compact hatchback parked beside a white charging station on a sunlit concrete surface with modern buildings behind
Illustration

Volkswagen is aiming to deliver the cheapest electric vehicle in the world, with a project reportedly championed by Herbert Diess, CEO of Volkswagen Passenger Cars. The move comes as the company seeks to reposition itself in the wake of the Dieselgate scandal and accelerate its shift towards electric mobility.

According to reports, Volkswagen’s plan is to launch a mass-market EV at a price point lower than the Chevrolet Bolt and Tesla Model 3, both of which are set to define the affordable electric segment. The new model would not simply be a rebadged e-Golf but a distinct vehicle with bespoke styling, built to achieve the lowest possible entry price for a mainstream electric car.

Platform and technical approach

The vehicle is expected to use Volkswagen’s Modular Electric Platform (MEB), which underpins the Budd-e concept and is designed for scalable, cost-effective EV production. By leveraging the MEB architecture, Volkswagen aims to keep development and manufacturing costs down, an important factor as the company continues to absorb costs related to regulatory fines and settlements.

Rather than building on the Golf nameplate, the company is said to be planning a new design, which would allow for a lower sticker price while distinguishing the car from existing models. The minimum range target is at least 186 miles (300 km) on a single charge, putting it in line with the latest generation of affordable EVs.

Market context and competition

The push to deliver the world’s cheapest electric vehicle comes as Chevrolet prepares the Bolt and Tesla readies the Model 3, both aiming for mass-market buyers. Volkswagen’s strategy is to undercut these models on price, making electric mobility accessible to a wider audience. The company’s efforts are also shaped by the need to rebuild its reputation and future-proof its product line against tightening emissions regulations.

  • Chevrolet Bolt: Affordable EV with over 200 miles range
  • Tesla Model 3: Mass-market EV targeting similar range and price
  • Volkswagen’s planned EV: Aimed to be cheaper than both, with a minimum 186-mile range

There are no confirmed details yet on body style or final pricing. Volkswagen’s project remains in the development stage, with further announcements expected as the company refines its approach to affordable electric cars.

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