Volkswagen CEO Optimistic About The Possibility Of $21K EV By Second Half Of Decade

In the world of electric vehicles (EVs), a reasonably priced option may soon be on its way. Volkswagen’s VWAGY CEO, Oliver Blume, has expressed optimism for a 20,000 Euro ($21,714) EV by the second half of the decade, despite plans for such a vehicle not yet being finalized.

What Happened: As reported by Reuters, Blume is confident in his company’s potential to achieve the goal of a 20,000-euro EV by the latter half of the decade. This confidence was voiced during a conference in Berlin.

According to Blume, the key to decreasing EV prices lies in reducing battery costs. He referred to the company’s strategy of manufacturing a unified battery cell, expected to cut battery expenses by half.

In March, Volkswagen shared details about a 25,000 Euro ($27,125) all-electric car under development, equipped with a 450-km range and quick charging capabilities. The company also hinted at working on a less expensive 20,000 Euro ($21,714) vehicle, but no further details were provided.

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Blume emphasized Volkswagen’s commitment to delivering the right products at the right price. 

“After early adopters were reached with electric cars, we now need consumers to be convinced by the technology, who don’t have the opportunity to install a charging station at home,” he stated.

He also noted the challenges of inflation, insufficient charging infrastructure, and the end of subsidies as obstacles to the demand for electric cars.

Why It Matters: Earlier this month, Volkswagen AG stated plans to launch a sub-$35,000 electric vehicle in the U.S. within the next three to four years. Reinhard Fischer, Senior Vice President and Head of Strategy at VW Group of America, affirmed the company’s commitment to expand its EV offerings in the U.S.

This latest announcement by CEO Blume further highlights Volkswagen’s commitment to making electric vehicles more accessible and affordable to a broader range of consumers.

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