Volkswagen dealers to get £17,000 electric car to sell in 2027

Volkswagen has pledged to join the likes of Dacia and MG Motor in offering a cut-price electric car to UK buyers.

It wants to introduce more affordable electric models to the European market and has revealed it will debut a new vehicle in 2027 with a price point close to £17,000.

It plans to develop and build the small electric car in Europe, in a bid to compete with the rise of Chinese models entering the market.

The £17,000 car will be smaller than the already announced compact EV coming in 2025 as the VW ID2 and the Cupra Raval.

Volkswagen Group chief executive Oliver Blume said: "Generations of people associate the strong brands of the Volkswagen Group with their first car – and with affordable mobility. As a group with strong brands, we continue to assume this social responsibility to this day. That's why I'm very pleased that we're launching a future-oriented project.

"It’s about entry-level electric mobility from Europe for Europe. In doing so, we combine a clear commitment to Europe as an industrial location, a European industrial policy and ultimately act in the interests of European customers."

Many carmakers have been criticised for failing to provide the typical customers of A-segment city cars with fully electric solutions at an affordable price. Some manufacturers, including Ford, exited the entry-level A-segment entirely, due to the limited profit opportunities that city runabouts offer.

Thomas Schäfer, Volkswagen brand chief executive, added “The future is electric. In order for electromobility to become widespread, attractive vehicles are needed, especially in the entry-level segment. Our brand promise is electromobility for all."

He said this promise is now being fulfilled, and despite the attractive price, Volkswagen vehicles "will set standards in the entry-level segment in terms of technology, design, quality, and customer experience".

Renault and Volkswagen have been reported to be discussing a platform sharing arrangement to deliver a new compact electric model for both brands but talks broke down a week ago.