Volkswagen Group confident about making an affordable electric car worth $27,000

Volkswagen Group is quite confident about making an electric car that would cost around $27,000. This means the EV would come priced at an amount translating to around ₹22 lakh. The German automobile giant also believes that such pricing won't hurt the company's revenue stream, reports British automotive publication Autocar UK.

During an interaction, Volkswagen Group's chief financial officer Arno Antlitz said that the company is confident about launching an affordable electric car without losing money. His comment comes at a time when Volkswagen has revealed the ID. 2all concept, which is expected to span out a Polo-like electric car when it goes on sale as a series production model sometime in 2025. This EV is expected to come priced at around $27,000 in Europe.

(Also check: Honda's e:Ny1 electric SUV with 412 km of driving range)

Interestingly, Volkswagen is also working on another smaller and even more affordable EV that would come bearing ID.1 nomenclature. It is expected to be priced at around $22,000.

Besides the upcoming affordable electric cars, Volkswagen is also planning to fully utilize its portfolio of automotive brands to make similar electric cars under the Skoda and Cupra brands. Speaking about that strategy, Antlitz said that the brand is confident about doing a lot in terms of economies of scale. “Now we can do a lot in terms of economies of scale. Within our volume brand group, we’re producing four vehicles along with Cupra and Skoda. That volume will help us to bring prices down to be competitive and also still make money," he said.

Besides making affordable electric cars, the Volkswagen Group is working on its own battery packs and is manufacturing them in-house at a factory in Valencia, Spain. These battery packs are expected to greatly contribute to the automotive giant’s opportunity of fetching profit from the upcoming affordable electric models. "There's a lot of innovations coming in the technical side. This car will have the first in-house battery cells from our Valencia plant. We're just ramping up; we will have much more scale by then," said the Volkswagen AG CFO.