Volkswagen Unveils Affordable Electric Vehicle ID.1 Priced Under $22,000 for 2027

Volkswagen is set to launch its most affordable electric vehicle, the ID.1, with a starting price of under $22,000 (20,000 euros) in 2027.

Positioned as an entry-level model, the ID.1 will mark a significant shift for the automaker as its first software-defined vehicle (SDV), paving the way for enhanced over-the-air (OTA) updates and functionality throughout its lifecycle.

The production version of the ID.1 is anticipated earlier than originally projected, thanks to Volkswagen’s partnership with Rivian.

ID.EVERY1 concept serves as the “last piece of the puzzle”

This collaboration, which involves a substantial investment of $1.3 billion from Volkswagen and an expansive joint venture focusing on EV software, is expected to reduce the timeline for introducing the ID.1 to market.

VW brand CEO Thomas Schäfer stated that the upcoming ID.EVERY1 concept serves as the “last piece of the puzzle” in a broader strategy to diversify its EV offerings.

The ID.1 is designed on VW’s front-wheel-drive MEB platform and will measure 3,880 mm in length, slotting between the Volkswagen Up and the ID.2all. It promises a range of at least 250 km (155 miles) based on the WLTP cycle, offering consumers a practical option for urban commutes.

Production of the ID.1 will take place in Portugal, where lower energy and labor costs are advantageous. Nevertheless, Volkswagen CFO Arno Antilitz has cautioned that achieving positive profit margins remains a challenge, even with one of its most efficient factories at the Setubal plant.

As part of a larger plan, Volkswagen aims to release nine new entry-level EVs by 2027, demonstrating an aggressive push into the growing electric vehicle market. With this strategic approach and new technology, Volkswagen hopes to redefine its place within the competitive EV landscape.