German automotive giant Volkswagen AG is reportedly accelerating development of a compact electric car which could cost less than €30,000 ($A48,500).
The VW-branded compact car is receiving increased attention as tightening emissions rules and generous subsidies bolster sales of battery-powered vehicles around the world, according to “people familiar with the matter” quoted by Bloomberg.
Expected as soon as 2023, the unnamed VW compact electric car would flank the company’s ID.5 crossover which will be sold starting in 2021.
Bloomberg also reported that VW is planning steps to further shrink its ICE (internal combustion engine) portfolio, having already culled models including the Beetle and Scirocco.
According to Bloomberg, VW will discontinue the mid-sized Passat sedan in the United States and sell only the station-wagon version in Europe. VW may also look to phase out the upscale Arteon coupe.
Volkswagen has predicted that EVs will account for around 90% of its car sales in Norway as early as next year, thanks in large part to the country’s stable and ongoing policy support.
The ID.3 hatchback was rolled out across Europe in September, the first vehicle based on the company’s modular electric drive matrix platform.
This will be followed globally by Volkswagen’s ID.4 SUV, launched as ID.3 deliveries began and expected to be the first of the company’s all-electric ID series to land in Australia.
Series production of the ID.4 began earlier this year at Volkswagen’s Zwickau/Wolfsburg factory, while production of two ID.4 electric crossover models began earlier this month in China.
Meanwhile, in mid-November Volkswagen CEO Ralf Brandstätter confirmed that Volkswagen will produce an all-electric station wagon with an impressive 700km driving range that will be available from 2023.
Joshua S. Hill is a Melbourne-based journalist who has been writing about climate change, clean technology, and electric vehicles for over 15 years. He has been reporting on electric vehicles and clean technologies for Renew Economy and The Driven since 2012. His preferred mode of transport is his feet.