Volkswagen’s confidence in the low price of its upcoming ID.2 means it could swoop in as a contestant in the fight for the cheapest electric car on sale.
Volkswagen Group Chief Financial Officer Arno Antlitz recently told media in the UK that the ID.2’s price is still on track to come in at less than £22,500 (A$42,900).
“For the time being, we’re quite confident that we can achieve that price point,” he told UK outlet Autocar.
“There are a lot of innovations coming on the technical side. This car will have the first in-house battery cells from our Valencia plant. We’re just ramping up. We will have much more scale by then.”
As well as tech advances, Antlitz points out that lowering costs of materials important for EVs is also contributing to a future of more affordable electrification.
“Look at lithium: it came down. Nickel came down. So from this perspective, we’re quite confident that we can achieve that target and, at the same time, have a decent margin,” he said.
This is good for the ID.2’s smaller sibling, the anticipated ID.1, which is expected to arrive in the UK for less than £17,000 ($32,500).
What that means for Australia is good news if the ID.1 comes here – while a direct conversion between currencies doesn’t often equate to the pricing for each market, cars in Australia often sell for less than a direct conversion from GPB to AUD due to different taxes and costs.
For example, a £36,475 Cupra Born in the UK would be AU$69,000 here, but Cupra Australia actually sells the Born for $59,990 before on-road costs.
That could mean the ID.1 ends up available here for less than $32,500, though there are other factors including the higher specifications Volkswagen Australia would likely choose – plus the fact it could decide not to bring the model here at all based on dwindling interest in the compact car segment.
Last week, the fight to be the most affordable electric car in Australia heated up significantly, with Chinese brand MG holding the title for two days with its $38,990 MG4 – before the BYD Dolphin was confirmed with a $38,890 pricetag.
Keyword: An electric VW for $30,000? German brand is 'confident' in affordable electric cars, so watch out BYD Dolphin and MG4 EV! - report