Photo Credit: VolkswagenVolkswagen is using a lower-cost electric SUV to try to defend its position as Chinese automakers gain momentum.Priced from about $32,000, the newly unveiled ID Cross puts the company into the affordable-electric-vehicle contest that brands such as BYD have been pushing forward, per EV commentator Sam Evans for The Electric Viking (@electricviking).What's happening?As Evans breaks down in a new video, the ID Cross is a compact electric SUV that Volkswagen is targeting mainly at Europe, where EV price competition has heated up rapidly.According to Evans, the German starting price is 28,000 euros, or about $32,000, and buyers will be able to choose either a 37-kilowatt-hour or 52-kilowatt-hour battery.AdvertisementAdvertisementWith the bigger battery, Volkswagen estimates as much as 265 miles of range, while DC fast charging from 10% to 80% is expected to take around 24 minutes.Volkswagen also says the vehicle will include physical interior controls, one-pedal driving, and optional driver-assistance features such as traffic light recognition. This is one that many feel the brand must get right."Volkswagen have just unveiled what might be the most important car in their entire lineup," Evans declared.The ID Cross is being positioned as Volkswagen's response to cheaper EVs from BYD, MG, and other Chinese brands expanding beyond China.Why does it matter?More competition in the affordable-EV market could mean better prices, more features, and more choices.AdvertisementAdvertisementEVs can already help many households save money through lower fuel costs and reduced routine maintenance, especially because they do not require oil changes and generally have fewer moving parts than gas-powered vehicles.The challenge for Volkswagen is that buyers are likely to scrutinize value closely, especially when compared to BYD's offerings."If you just compare what you get and how much you have to pay for the cheapest version... It will be quite difficult for the ID Cross," one commenter wrote.Even so, a credible $32,000 EV from a major global automaker could help push the market forward. It's also worth noting that tariffs in Europe on Chinese vehicles could level the playing field.AdvertisementAdvertisementIf Volkswagen succeeds, it could also put more pressure on the rest of the industry to offer practical EVs at prices more consumers can afford.What can I do?If you are considering buying an electric vehicle, launches like this can affect pricing, range, and technology across the industry even if the exact model never makes it to the United States.The biggest savings often come after purchase. Charging an EV at home can save money, though basic Level 1 charging tends to be slow. Qmerit provides free, instant installation estimates for faster Level 2 home charger installations.Shoppers should also look beyond the sticker price and compare total ownership costs, including fuel, maintenance, and available incentives.AdvertisementAdvertisementIn many cases, an EV that appears more expensive up front can become the cheaper option over time. Even for those not driving EVs, success for more car brands is a benefit for consumers as makers compete on price."The VAG Group has an incredible amount of different car models," a commenter in Sweden wrote. "I hope this is not the end of them."Get TCD's free newsletters for easy tips, smart advice, and a chance to earn $5,000 toward home upgrades. To see more stories like this one, change your Google preferences here.