Home Technology Volkswagen believes it can make a profit from a €25,000 electric car

Volkswagen believes it can make a profit from a €25,000 electric car

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Volkswagen believes it can make a profit from a €25,000 electric car

Volkswagen’s €25,000 electric car is known as the ID.2 for now
(photo: Volkswagen)

Not long ago Volkswagen announced its intention in the coming years to offered to customers in Europe electric car ID.2 at a price of 25,000 euros. IN interview for Autocar fthe auto giant’s CFO stressed that by the middle of the decade Volkswagen will can sell such a car with a decent profit margin.

Concerns about escalating “price wars” in the electric car business came amid Tesla’s January actions. The American manufacturer has significantly reduced the prices of its cars sold in major regional markets, and Elon Musk has signaled that he is willing to sacrifice profit in the short term.

Other car manufacturers that have not yet managed to optimize costs obviously do not like this scenario, since having to compete with Tesla on prices would deprive them of the opportunity to make decent money from the sale of electric vehicles.

The margin on the sale of a €25,000 electric car can be very modest, as even Tesla is not yet able to offer anything in that price range.

Arno Antlitz, who is responsible for finance and planning at Volkswagen, has no doubts about the company’s ability to bring a €25,000 electric car to market. From a technical point of view, the concern is preparing many innovations, and the ID.2 will probably be the first electric car with traction batteries of its own production – from the Volkswagen plant in Valencia, Spain.

Combined with lower raw material prices and economies of scale, this will make it possible to sell electric cars for 25,000 euros with an acceptable profit margin, summarizes Volkswagen’s chief financial officer.

Moreover, in the future the company intends to offer an electric car worth about 20,000 euros, which will become an ideological successor to the electric version of the e-Up – a compact city car with a small battery and moderate mileage.

According to representatives of the automaker, the electric platforms of the future may even contribute to the revival of the Polo model, although the management of Volkswagen promises to approach the use of popular names of the past very responsibly, attributing them only to “true successors”.

Volkswagen could start assembling low-cost electric cars in India, where production costs are lower, and export them to Europe if governments’ tariff policies help.

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