Volkswagen is set to introduce its budget-friendly ID.2 electric vehicle by the end of 2025, with an SUV version to follow. The ID.2 will be priced under $27,000 (€25,000), making it the most economical model in the company's lineup.
At the LA Auto Show, Volkswagen's tech development head, Kai Grünitz, confirmed that the ID.2 will lead a major overhaul of the brand's electric car series. Significant advancements are anticipated starting in 2026, featuring a fresh design approach.
Grünitz stated, "It's matching 100% to our brand values: it will be stable and likable with our secret sauce -- but in a different way." The ID.2 will utilize Volkswagen's new MEB Entry Platform and promises a range of up to 279 miles (450 km).
This announcement comes as Volkswagen faces challenges, including a 10% decline in electric vehicle sales in Q3 2024, particularly in the U.S. and Europe. The ID.2 is seen as a crucial strategy to capture a larger market share.
Volkswagen is also increasing its stake in Rivian Automotive Inc., a move analysts view as vital for enhancing production and cost efficiency.