Volkswagen has made it clear its future is largely electrified, but additional context on their electrification plans continue to trickle out. The German automaker has confirmed part of its plan will include city cars smaller than the upcoming ID hatchback EV.
Volkswagen Group held its Annual Media Conference earlier this week, where CEO Dr. Herbert Diess confirmed the company’s MEB electric vehicle architecture will scale down to support city cars. Given the MEB’s overall flexibility, it comes as little surprise the architecture can support smaller cars too.
Diess spoke in more detail to AutoExpress confirming the first city car will arrive around 2023 and be in the form of a hatchback. Diess stated the company feels it has to offer electrification in smaller segments in order to achieve its market share targets, but that it will take a top-down approach to electrifying its fleet.
Despite the company’s grand electrification plan, Diess did admit that battery cost continues to be a problem and will particularly be so when it comes to smaller cars.
“Batteries remain expensive so the price difference between a conventional car and an electric car in that class, like the Polo or the Up, is a bit of a challenge in terms of economics,” Diess stated. “But if you think about what we want to do, i.e. go up to 40 percent e-mobility share by 2030, then we have to electrify those lower segments as well.”