Let's just say it may be a game changer.
Consumers aren't ready to buy electric cars for myriad reasons, from range anxiety and a lack of options to fear of change. Price is certainly one complaint that comes to mind. Although automakers are working to develop cheaper EVs, they still cost significantly more than their gas-engine counterparts. Volkswagen has said its EVs will be priced similarly to its diesel models before Dieselgate, though we haven't been given any exact price figures.
Now, Reuters reports that VW's EV models are expected to sell for less than 20,000 euros ($22,836), which would a complete game changer in the EV market.
Sources close to VW say the company is planning to convert three factories in Germany to produce EVs. Another vehicle called the ID Aero will reportedly be built in a plant that currently manufactures the Passat. VW has also discussed building EVs in the US, which could further help bring down the cars' prices.
If VW is truly able to sell an EV for under $23,000, it would be completely revolutionary for the segment. Currently, the Smart ForTwo Electric Drive is the least expensive EV in the US with a starting price of just $23,800, although it comes with a lackluster range of just 58 miles. VW's EV could potentially be even cheaper than the Smart and match rivals like the Chevy Bolt on range.
Comparatively, the "affordable" Bolt costs $36,620 and has a range of 238 miles. VW is ambitiously targeting a much lower price, so we'll have to see if the German Automaker can deliver. Even Tesla's long-awaited entry-level $35,000 Model 3 -which has yet to enter production - wouldn't be able to match VW's ID models on price. It's too early to tell if VW can hit this desirable price for its future EV models, but if the company can pull it off, we'd say it is game-set-match.