Volkswagen Reveals New Entry-Level Electric ModelVolkswagen Reveals New Entry-Level Electric Model

Volkswagen unveils its latest entry-level battery-electric model, offering a glimpse of its front-end design to employees at its Wolfsburg plant in Germany. The event, attended by Volkswagen brand CEO Thomas Schäfer, was organized to outline plans for the future of the German carmaker’s global manufacturing headquarters.

The new BEV, previously known internally as the ID.1, is planned to be priced at about €20,000 ($20,850). While VW has not yet confirmed the production name, Wolfsburg insiders suggest it could resurrect the Up badge. The original Up, introduced in 2011 and offered in both internal-combustion and electric variants, was discontinued in 2021. The new model is part of VW’s strategy to compete in the growing “affordable” EV market against rivals such as Renault and its proposed electric Twingo, as well as Chinese BEVs making inroads in Europe.

The Wolfsburg facility, traditionally known for producing VW’s key models such as the Golf and Tiguan, will be central to the company’s transition to an electric lineup. The plant is earmarked to manufacture the new electric models, including successors to the Golf and T-Roc, based on VW’s new SSP platform.

Schäfer emphasizes the importance of the Wolfsburg plant: “With the December (labor) agreement, we have set the course for the largest future plan n Volkswagen’s history. A crucial step is making e-mobility attractive for everyone – that is our brand promise."

The new BEV is part of VW’s “Triple A” strategy: Aufholen (Catch Up), Angreifen (Attack) and Anführen (Lead). Volkswagen plans to launch nine new BEV models by 2027, including a production version of the ID. 2all concept – another affordable compact electric model priced under €25,000 ($26,040) and expected to debut in 2026.

While a bold BEV strategy, it is not without risks. Nine new BEVs in the next three years is a lot of launches to manage at a time when BEV demand has softened and politics in both Europe and North America are working against rapid BEV adoption. Car buyers in both markets are pushing back on mandates especially because of slow-developing public charging infrastructure, charging times and charger reliability.

Since 2019, VW has sold over 1.35 million electric ID. models globally. In 2024, it booked 383,100 electric model sales worldwide out of 9 million vehicles sold.