Sub-$35K Volkswagen EV To Launch In America

The promises of more affordable EVs keep coming, and Volkswagen is the latest manufacturer to say it will launch such a model in the USA in three to four years from now. Reinhard Fischer, senior vice president and head of strategy at VW Group of America, said the new EV will cost under $35,000 when it goes on sale. Fischer was speaking at the Reuters Events Automotive USA 2023 conference in Detroit, as reported by Automotive News.

A sub-$35k price would make the new EV slightly cheaper than the base ID.4 currently on sale, and if it's built at the company's Chattanooga plant in Tennessee, it should qualify for attractive tax incentives. However, the car could also be built in Puebla, Mexico, or the upcoming plant in South Carolina — all three options are being considered at this stage.

The sub-$35k price isn't as attractive as Tesla's promised entry-level EV for around $25k, but it's probably more realistic. The EV could be smaller and more rugged than the ID.4, and may have an entirely new nameplate. The exact body style is unconfirmed, but one possibility is the ID. GTI — its expected 2027 arrival matches the latest confirmation of a sub-$35k EV arriving in three or so years. Perhaps a less expensive version of the ID. GTI can be expected. VW execs have previously voiced a strong desire to sell the ID. GTI to American enthusiasts.

It will be interesting to see how small VW goes with this EV since subcompact models are increasingly rare in America. Then again, if a premium brand like Volvo thinks it has a chance with a sub-$35k EV like the EX30, why wouldn't VW?

«We are not scaling back plans for EVs in the US market,» said Fischer at the Detroit conference.

That sentiment wasn't reflected in Germany recently, when VW temporarily suspended production of two small EVs — the ID.3 and Cupra Born — due to lower-than-expected demand. Hopefully, VW's new affordable EV won't encounter the same struggles. At under $35k, VW's new EV will compete on price with models like the Hyundai Kona Electric, next-gen Chevy Bolt, and the Chevy Equinox EV — the latter was supposed to start at $30k, but that did not happen.

In America, VW's EV plans will kick into high gear next