German automobile giant Volkswagen (VW) is set to revolutionize the electric car market with the launch of its budget-friendly ID.1, which is expected to make debut by 2027 with a price tag below $22,000 (approximately €20,000). The sub-$22K ID.1 city car will obviously make electric mobility more accessible to a far more onlookers. According to emerging reports, the development of this entry-level, battery-powered vehicle is already underway.

The ID.1 electric car is positioned as a cost-effective alternative to the brand’s upcoming ID.2 hatchback, which is expected to be priced at around $27,500 (approx. €25,000). This strategic move by the German automaker signals a shift toward more affordable EVs, catering to a diverse range of potential buyers who are currently in search of an affordable car as they might not be inclined to invest in higher-priced EVs.

The design sketches for the Volkswagen ID.1 are reportedly complete, and the EV is said to be capable enough to compete with the next-generation Renault Twingo, which will also be priced around $22,000. It is interesting to note here that Volkswagen was recently in discussions with Renault to work together on the development of a small, pocket-friendly urban EV. It suggests that some major automakers are interested in a collaborative effort to address the demand for affordable electric options.

Drawing inspiration from the discontinued e-Up car, the upcoming Volkswagen ID.1 EV will embrace the design as well as functionality DNA of the German brand but at a lower price point. Technical development chief Kai Grunitz emphasized that the upcoming EV will align with customer demands in its price class, indicating that the vehicle in question may lack some high-end technologies.

Speaking on the topic, Grünitz said, “It will be a car that fits into the Volkswagen brand design DNA and functionality DNA but at a lower price. You need a car that really fits the customer demands in that price class. You don’t need high-end technology within these cars.”

Thus, prospective customers should expect a no-frills approach to features, with a potential reliance on the driver's smartphone for infotainment, similar to the approach taken in the e-Up! era.

Volkswagen's commitment to offering an affordable electric vehicle lineup, which includes the ID.1 and ID.2, aligns with a broader industry trend toward making electric mobility more inclusive and accessible. As electric vehicles become more affordable, it opens up new possibilities for a wider range of consumers, contributing to the acceleration of the global transition to sustainable transportation.