• Volkswagen has launched a new affordable electric vehicle called ID.2.
• The car will be priced under 25,000 euros when it enters the European market in 2025.
• Volkswagen plans to launch ten new electric cars by 2026 and aims to attain an electric car share of 80% in Europe.

Volkswagen the German automaker, launched a new affordable electric vehicle on Wednesday, as competition in the EV industry heats up.

According to the manufacturer, the ID. 2all model, which has front-wheel drive and a range of up to 450 kilometres (280 miles), will be priced under 25,000 euros ($26,300) when it enters the European market in 2025.

It is one of ten new electric cars that the business intends to launch by 2026 as it increases its investment in electrification and digitalization.

VW stated the new models will give it “the biggest variety of electric vehicles compared with its competitors” with the aim “to attain an electric car share of 80% in Europe”.

“We are moving quickly to deliver electric mobility to the masses,” Volkswagen Passenger Vehicles CEO Thomas Schaefer said in a statement.

VW board member Thomas Schmall stated that the business was confident in its ability to sustain the low price point through “economies of scale” gained by strong sales volume.

Volkswagen announced on Tuesday that it will invest 122 billion euros in the transition to electric vehicles over the next few years.

“As early as 2025, every fifth car sold globally is projected to be an all-electric drive,” the association predicted.

Volkswagen cited its push to develop a series of battery plants as “a primary reason” for the spending hike, as well as expenses related to sourcing raw materials for batteries.

It intends to spend its money on “expanding its presence in the North America region” in the next years.

The business also seeks to improve its competitiveness in crucial Chinese markets, where it has lagged behind American rival Tesla and local electric car producers.

In 2022, battery-powered vehicles accounted for a record 7% of VW Group deliveries, totaling just over 572,000 units worldwide.

VW anticipates that EVs will account for approximately 10% of its vehicle sales in 2023.

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