Race to break the $30K barrier: Volkswagen will launch ID.1 budget-buy in 2027

Volkswagen has confirmed it is hatching an all-new entry-level replacement for the Up city car that will be priced from less than €20,000 ($A33,000) when it arrives in 2027.

The announcement of what is expected to be called the ID.1 comes just days after the MG revealed work was underway on a sub-$30,000 EV expected to be called the MG2.

The iD1 is designed to help the German brand fight off the invasion of cheap Chinese imports such as the MG2 and rival European cars like the incoming Renault Twingo and the Dacia Spring EV that’s already on sale.

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Confirming the ID.1 is in development, VW CEO Thomas Schaefer said that four different design proposals are under consideration, telling those present at the brand’s annual press conference that VW would price it below €20,000.

“This is the Champions League. To take so much cost out you need massive economies of scale,” he announced.

The VW boss said “in the next few weeks” it would be decided which of the four concepts would be green lit for production.

To lower the cost of development, VW has already been rumoured to be plotting teaming up with car-makers like Renault, meaning the ID.1 could be the Twingo’s twin.

VW and Skoda are already working on a small electric car for India – it’s not known if that could also be based on the ID.1.

The 2027 date was picked by Schaefer as he said he wanted the Polo-sized ID.2all production car (pictured top) that will launch in 2026 to have established itself first in the market.

The ID.1 and ID.2 are just two of the 11 electric cars that Volkswagen will launch from now until 2027, that includes the long wheelbase ID. Buzz people mover and two models that are being developed in cooperation with Xpeng for China.