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Volkswagen to Launch Sub £20,000 EV in 2027

Volkswagen’s ID.1: A Game-Changer for Affordable EVs?

Despite car manufacturers rolling out new electric models and expanding their EV line-ups, truly affordable options remain scarce. The high cost of production—especially for batteries, which are still expensive and only gradually becoming cheaper—means that most brands have been hesitant to launch budget-friendly EVs.

Instead, this gap has largely been filled by Chinese manufacturers like BYD, Omoda and Jaecoo, who have the scale and resources to mass-produce lower-cost electric and hybrid cars.

Volkswagen ID.Every1
Volkswagen ID.Every1

However, rather than ignoring the growing affordability gap in the EV market, Volkswagen has decided to take matters into its own hands. Enter the ID.1—a compact electric hatchback set to follow in the footsteps of the popular e-Up, with a starting price of around £16,500. At a time when most new EVs cost well over £40,000, the ID.1 offers a much-needed alternative to models like the Dacia Spring and Leapmotor T03.

Dacia Spring
Dacia Spring

The production version of the ID.1 will take inspiration from VW’s Every1 concept, featuring a modern, user-friendly infotainment touchscreen with Apple CarPlay and Android Auto integration. It will also include practical touches such as a sliding rail-mounted centre console (similar to the one in the ID.Buzz), a detachable Bluetooth speaker, and physical buttons for climate control, audio volume, and hazard lights—offering a refreshing change from the trend of touchscreen-only controls. That said, the ID.1 will stick to a minimalist design to keep production costs down and ensure it remains competitively priced.

Built on Volkswagen’s MEB platform, which underpins many of the brand’s electric models, the ID.1 will be front-wheel drive and offer a surprisingly spacious interior, making it a practical choice for both city driving and small families.

On paper, the ID.1 appears to improve on the e-Up in several areas, but one key drawback is range. VW claims the ID.1 will manage 155 miles on a single charge, though real-world figures are likely to be lower. This makes it less suited for long commutes or family road trips and instead best for shorter journeys and urban driving.

As a result, for many households, the ID.1 won’t be a realistic replacement for their main car. While it could serve well as a cheaper second vehicle, not all families will have the luxury of owning two cars—meaning some of the very buyers VW is targeting might still struggle to make the switch to electric.

That said, the ID.1 is a major step in the right direction for making EVs more accessible. As battery costs continue to fall and technology progresses, more manufacturers may be encouraged to shift away from premium-priced models and invest in affordable small EVs. The success of the ID.1 could also influence other European brands as they plan their own budget-friendly electric cars.

The ID.1 is expected to launch in 2027 and will be one of nine new models Volkswagen is introducing over the next two years. Among them is the ID.2, set to replace the Polo, and the ID.2X, which will take over from the T-Cross.