Volkswagen VWAGY is gearing up to introduce its budget-friendly ID.2 electric vehicle by the end of 2025, with an SUV version to follow. This move marks a significant step in Volkswagen’s strategy to expand its electric vehicle lineup.
What Happened: Volkswagen is on schedule to release its budget-friendly ID.2 electric vehicle by late 2025, reported Autocar. This model is expected to be the most economical in the company’s lineup, priced under $27,000 (€25,000).
At the LA Auto Show, Volkswagen’s tech development head, Kai Grünitz, confirmed that the ID.2 will lead a major overhaul of the brand’s “ID” electric car series. Grünitz indicated that significant advancements are anticipated, starting in 2026, with a fresh design approach.
"It's matching 100% to our brand values: it will be stable and likable with our secret sauce—but in a different way," Grünitz said, according to the report.
The ID.2 will be the first vehicle to utilize Volkswagen’s new MEB Entry Platform. An SUV version is slated for a reveal at the Munich Motor Show in September 2025, with a GTI model also in development.
Grünitz emphasized that the ID.2 will mark a new beginning for Volkswagen, with customers noticing a substantial transformation. The vehicle promises a range of up to 279 miles (450 km) and combines the spaciousness of a Golf with the affordability of a Polo.
Why It Matters: Volkswagen’s push to launch the ID.2 comes amid a challenging period for the company.
In the third quarter of 2024, the automaker experienced a 10% decline in electric vehicle sales, primarily in the U.S. and Europe, although China showed a 5% growth. This underscores the importance of the ID.2 as a strategic move to capture a larger market share.
Meanwhile, Volkswagen has been making strategic investments, such as increasing its stake in Rivian Automotive Inc. RIVN. Analysts see this as a vital step for both companies, aiding in production and cost efficiency. The collaboration is expected to provide capital for future growth, enhancing vehicle offerings and software integration.
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Photo courtesy: Volkswagen
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