Volkswagen Will Price Electric Cars Similar To Its Diesel Models

Pricing

The aim is to make affordable electric cars for the people.

Volkswagen is attempting to reinvent itself post Dieselgate by replacing its diesel modes with new electric vehicles. So far, VW has released several concept vehicles under the I.D. electric range including the I.D. Buzz, I.D. Buzz Cargo, and I.D. Crozz. The Germany automaker says these I.D. models won't be much more expensive than a typical gas car but this may be overly optimistic. According to Green Car Reports, VW's electric models may cost around the same as the company's diesel models prior to Dieselgate.

Looking at pre-Dieselgate prices, a 2015 Jetta 1.8T SE had a starting price of $19,815, while a Jetta TDI SE had a starting price of $24,895 (an increase of 25%). At the higher end of the range, the price difference was a bit smaller. A gas engine Touareg started at $45,615 while the TDI started at $53,155 (an increase of 17%).

Judging by these estimations, VW's electric models will likely cost 17-25% more than the equivalent gas car. If the I.D. Crozz ends up being similar to the Tiguan, it would likely cost around $30,000 (roughly 25% more than the Tiguan's $24,195 starting price).

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By 2025, battery technology is expected to improve and eliminate the price delta between EVs and ICE cars. For now, EVs are helped by a $7,500 tax incentive that won't stick around forever. VW says it wants to build “electric vehicles for millions, not millionaires and then we are sure we can convince millions because then it is no longer a price range for special customers,” said Thomas Ulbrich, member of the VW Group Board of Management responsible for e-mobility. If the VW I.D. range ends up being affordable, it could revolutionize the EV market.

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