Volkswagen To Develop Affordable Electric Vehicles To Compete With Chinese Rivals: Report

German automobile giant Volkswagen is set to develop low-cost electric vehicles to better compete with Chinese rivals. The company aims to produce electric cars for the European market priced at around 20,000 euros ($21,746) and plans to launch them globally by 2027.

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Volkswagen's CEO, Oliver Blume, emphasised the company's commitment to creating affordable electric mobility solutions specifically for Europe. He stated that this project would support European industry and cater to European customers' needs. The initiative is a response to the increasing competition from Chinese automakers, who currently have a 30 per cent cost advantage over their Western counterparts. These Chinese manufacturers are expanding into Europe, threatening the market share of established carmakers like Volkswagen.

To counter this, Volkswagen plans to localise production in Europe, which will help reduce transportation routes for components and lower emissions. This localisation effort is part of Volkswagen's broader strategy to prepare for the competitive threat within the next two to three years, warning that the European automotive sector's survival is at stake. Schaefer also called for political support and competitive framework conditions to ensure the success of electric mobility projects in Europe.

Volkswagen is also implementing significant cost-cutting measures, aiming to save 10 billion euros by 2026. Despite the low price target, Volkswagen brand boss Thomas Schaefer assured that the entry-level electric model would not compromise on technology, design or quality. 

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In summary, Volkswagen is working on developing affordable electric vehicles for the European market, aiming to launch the ID.1 model by 2027. The company is focusing on local production and significant cost-cutting measures to stay competitive against Chinese rivals, while also seeking political and industrial support to bolster the European electric vehicle industry.