Volkswagen's Affordable EV Dream Faces Major Threat

As the electric era draws near, people are slowly embracing the idea of EV ownership. Vehicles like the Volkswagen ID.4 are enjoying great popularity across the globe but, unfortunately, the electric car is still out of reach for many in the United States. The cheapest battery-powered vehicle is the $27,400 Nissan Leaf which is unattainable for many - even with incentives.

Now more than ever, there's a need for affordable EVs. Keen to topple Tesla and corner the market, VW has promised a slew of affordable electric offerings. With a base price of €20,000 (approx. $21,000), it should bring EV ownership within reach of millions. However, one thing stands in the way of this dream.

Speaking to Automotive News, Cupra's Werner Tietz - Cupra forms part of the VW Group - said European inflation remains a serious concern. "Inflation at 7% a year would be a problem," said the head of development.

Citing the European Union's statistical office, the publication reports that Europe's annual inflation rate is expected to sit at 8.1% for May - 0.7% higher than the month before. Currently, the VW Group's most affordable EV in other markets is the aging e-Up, priced at around €26,000 (approx. $27,150).

The trio of replacements - expected to wear the VW, Skoda, and Cupra badges - will arrive in 2025 but if the low pricing cannot be achieved, the Volkswagen Group is unlikely to generate the strong sales it had hoped for. Seen above is the UrbanRebel concept car, Cupra's take on the electric city slicker.

As the sportiest of the bunch, the company may be able to get away with a higher asking price to justify the more athletic package. Skoda, which has traditionally been the more affordable VW Group brand, will most likely have the cheapest vehicle of the three.

As reported, the compact EVs have a trick or two up their sleeves when it comes to pricing. Firstly, the entire range is being developed by Cupra engineers (which will keep costs down) and, secondly, production costs are far lower in Spain as opposed to Germany, where several of the group's electric cars are produced.

It's very unlikely that the small Volkswagen EVs will make their way stateside and that's a shame. Even if they're purchased as second cars, it will undoubtedly stir electric vehicle sales in the USA and introduce the technology to an income bracket that's currently left out.

In the case of the Cupra, it's set to be a very stylish little car with plenty of performance. Tietz said the UrbanRebel will be able to hit 62 mph in 6.9 seconds, with the long-range derivative capable of traveling 273 miles on a single charge. This has presumably been estimated using the WLTP cycle, though. Hopefully, Volkswagen can get the pricing for these affordable EVs just right.