Benzinga - Volkswagen AG (OTC: VWAGY) is stepping up efforts to make a mark in the electric vehicle race. Shortly after announcing a massive $193 billion investment toward electrification, the German automaker premiered its budget model ID.2 all-concept EV.
What Happened: Unveiling the ID.2 on Wednesday, Volkswagen said it is extending the success story of its compact car to the EV arena. The production model of the EV, which is to be priced at less than 25,000 euros ($26,500), would be made available in 2025, it added.
The ID.2 will likely be a front-wheel drive model with a range of up to 450 km and include innovative features such as Travel Assist, IQ.LIGHT or EV Route Planner and a new Volkswagen design language. It would be as spacious as a Golf while being inexpensive as a Polo, the company said.
The company intends to produce the version based on the MEB Entry platform.
“The ID. 2all shows where we want to take the brand. We want to be close to the customer and offer top technology in combination with fantastic design,” said Thomas Schäfer, CEO of Volkswagen Passenger Cars.
“We are implementing the transformation at pace to bring electric mobility to the masses.”
Volkswagen said the ID.2 will be one of the ten new EV models the company plans to launch by 2026. It expects to introduce the new ID.3, the ID. Buzz with long wheelbase and the ID.7 this year, followed by a compact electric SUV in 2026.
The company also said it is working on an EV priced below 20,000 euros.
“This will give the car manufacturer the widest range of electric vehicles compared with its competitors, and the company is aiming to achieve an electric car share of 80% in Europe,” the company said. This is up from the 70% it estimated earlier.
Why It’s Important: As macroeconomic challenges abound and customers become price-conscious, the accent in the near- to medium-term is likely to be on affordable EVs. As Tesla Inc.’s (NASDAQ: TSLA) sales trail competition in China, analysts say a lack of budget model EV in its portfolio is hurting sales.
The U.S. EV maker was widely expected to announce details of a budget model EV and the timeline for launch at its Investor Day held on March 1. With the Elon Musk-led company failing to give any concrete detail, its stock reacted with a move to the downside in subsequent sessions.
Check out more of Benzinga's Future Of Mobility coverage by following this link
Volkswagen shares trading over the counter in the U.S. ended down 4.59% at $17.23, according to Benzinga Pro data.
Check out more of Benzinga's Future Of Mobility coverage by following this link.
Read Next: Tesla's Rumored Model 2 Sedan Could Catapult EV Maker's Revenue To $400B By 2030, Analyst Predicts Ahead of Investor Day
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.