At the end of 2022, Volkswagen lost the title of the best-selling car brand in China, and the throne was taken over by the domestic electric vehicle manufacturer BYD. In order to remain competitive, VW decided to invest 2.5 billion euros in the expansion of the production and innovation center in the Chinese city of Hefei, which will enable 30 percent faster placement of technology and increase the production of their electric vehicles in China.
The German company has announced a series of new models in the electrification of its Chinese portfolio to regain lost share in the world’s largest car market. In 2023, VW invested 700 million dollars in the Chinese car manufacturer XPENG, becoming the owner of nearly 5% of the company, with which it agreed a partnership on the production of two models of this German brand. Both models will hit the market in 2026.
Since the beginning of the year, VW has premiered several new models such as their first all-electric station wagon VW ID.7 Tourer, ID.3 GTX Performance, ID.7 GTX Tourer, Golf R, and ID.Buzz GTX van. Also, the manufacturer discontinued the production of some models such as VW Arteon and T-Roc Cabriolet. The return of some models such as the VW Scirocco, which was discontinued in 2017, was also announced.
In February 2024, chief technology officer Kai Grunitz announced that the German manufacturer is developing a new small electric model, the ID.1, which will be positioned below the electric model ID.2. It is a new and affordable electric car that will cost under 20,000 euros and will arrive in 2027 as a replacement for the outgoing VW e-UP!.
The VW ID.1 is due to hit the market in three years, and is part of VW’s long-term plan that includes the introduction of 10 new all-electric vehicles for customers on a tighter budget. The manufacturer has not yet made a final decision whether the car will be developed on the Small MEB platform used by the current ID models or will partner with Renault using their AmpR Small architecture. The German media state that the second option is more certain and that discussions are underway between Volkswagen and Renault about cooperation on this joint project, with the aim of creating prerequisites for the mass production of a 20,000 euro electric vehicle. However, everything will depend on the costs of production and profit.
In the last few years, Volkswagen has presented several smaller models, among them the ID.Life, a “people’s car” concept available for every pocket, with a price of 20,000 euros. It is an urban car that retains simplicity and minimalist appearance, which is visible at first glance. No expensive materials. Recycled materials, wood, rice husk and rubber were used in the construction of the vehicle.
“In creating the ID. LIFE, we have consistently focused on the needs of younger customers. We believe that, even more so than today, the car of the future will be about lifestyle and personal expression. The customer of tomorrow won’t simply want to get from A to B; they will be much more interested in the experiences that a car can offer. The ID. LIFE is our answer to this,” said Ralf Brandstätter, CEO of the Volkswagen brand.
At the end of January, Renault premiered the electric version of the model that was the best-selling model in France in the 80s, the Renault 5 E-Tech Electric. Interest in this car is high, as Renault has so far received 50,000 requests. Takođe, Škoda has introduced the prototype of its new subcompact electric SUV, Škoda Epiq. It comes with more passenger space and luggage space, but also with a range of more than 400 km.
The price of electric cars is on the rise and the invasion of Chinese cars, which are slowly conquering the old continent, is increasing. This puts European manufacturers in a difficult position from which they are trying to find a way out. Are cheap small electric cars the answer!?
Manufacturers are working hard on the electrification of their fleets, replacing some of its popular ICE models with fully electric ones. In order to keep up with the competition, some of the models that have not been on the market for years could be revived. One of them is the VW Scirocco, which, if all goes according to plan, should debut in 2028.
The Volkswagen Scirocco was first presented in 1974. The first two generations were produced between 1974 and 1992. After 16 years (in 2008), the third generation VW Scirocco arrived on the market and was produced until 2017, when VW decided to discontinue this model.
According to Autocar, VW is seriously considering bringing back the Scirocco as an electric coupe. The car would be built on the PPE platform, which it would share with the new Porsche Boxster and Cayman. Also, the new Scirocco would be powered by two electric motors (400 hp / 298 kW) with all-wheel drive. Volkswagen is also considering an option with a single electric motor of up to 300 hp (224 kW), and it could represent the brand’s benchmark when it comes to the performance of models in the R range.
Audi, as part of the VW Group, retired its 2-door sports model TT at the end of last year after 25 years. On this occasion, Audi unveiled a limited edition of this model, the Audi TT Tourist Trophy, which will be produced in only 25 copies. However, some rumors say that the TT model could still return in the future, but as a fully electric car.
