In response to increasing competition in the EV market, German auto giant VW launched a new entry-level electric vehicle on Wednesday. In a press release on March 15, Volkswagen provided a first look at the ID. 2all concept, an affordable electric vehicle. According to the press release, the vehicle will be “as capacious as Volkswagen’s Golf and as affordable as a Polo”.

When it debuts on the European market in 2025, the ID. 2all model, which has front-wheel drive and a range of up to 450 kilometres (280 miles), will cost less than 25,000 euros ($26,300).

According to Thomas Schmall, a member of VW’s board of directors, the business is optimistic that “economies of scale” attained through strong sales volume would allow it to retain the low price point. VW had said on Tuesday that it would spend 122 billion euros over the following years to transition to electric vehicles.

One of the ten new electric cars VW will introduce by 2026 is the automobile. Up until 2026, additional models like the new ID.32, the ID. Buzz with a long wheelbase3, and the ID.74 will be released.

VW will introduce a small electric SUV in addition to these models in 2026. VW is developing an electric vehicle with a price tag of less than 20,000 euros, according to the press release.

“We are implementing the transformation at pace to provide electric mobility to the masses,” Volkswagen Passenger Vehicles CEO Thomas Schaefer said in a statement.

Every fifth vehicle sold worldwide is anticipated to have an all-electric motor as early as 2025, according to the organisation.

The business also aims to become more competitive in China, a crucial market where it has lagged behind US rival Tesla and regional producers of electric vehicles.

In 2022, the Volkswagen group delivered a record 7% of all vehicles that were battery-powered, or just over 572,000 vehicles worldwide.

VW hopes to take 80 percent of the European market for electric vehicles with its focused emphasis on electric vehicle production.