Volkswagen has not made a decision on producing a €20,000 (R394,319) electric car yet, but CEO Oliver Blume is convinced the company can get there by the second half of the decade.
The main lever to reduce prices of electric cars is reducing battery costs, Blume said at the Sueddeutsche Zeitung Wirtschaftsgipfel conference in Berlin on Wednesday, pointing to the company's plans to produce a unified battery cell it says will reduce battery costs by half.
Volkswagen laid out the details in March of an electric car under development for €25,000 (R492,851) to launch by 2025 with a 450km range and battery charging from 10% to 80% in about 20 minutes.
The company said at the time it was working on a €20,000 vehicle, but did not provide more information.
“We have a responsibility to bring the right products at the right price to the market,” Blume said.
“After early adopters were reached with electric cars, we now need consumers to be convinced by the technology, who don't have the opportunity to install a charging station at home.”
The pressure of inflation, a lack of charging infrastructure and the removal of subsidies were also holding back electric car demand, Blume said.
VW's Blume says a €20,000 EV could come in second half of decade
Volkswagen has not made a decision on producing a €20,000 (R394,319) electric car yet, but CEO Oliver Blume is convinced the company can get there by the second half of the decade.
The main lever to reduce prices of electric cars is reducing battery costs, Blume said at the Sueddeutsche Zeitung Wirtschaftsgipfel conference in Berlin on Wednesday, pointing to the company's plans to produce a unified battery cell it says will reduce battery costs by half.
Volkswagen laid out the details in March of an electric car under development for €25,000 (R492,851) to launch by 2025 with a 450km range and battery charging from 10% to 80% in about 20 minutes.
The company said at the time it was working on a €20,000 vehicle, but did not provide more information.
“We have a responsibility to bring the right products at the right price to the market,” Blume said.
“After early adopters were reached with electric cars, we now need consumers to be convinced by the technology, who don't have the opportunity to install a charging station at home.”
The pressure of inflation, a lack of charging infrastructure and the removal of subsidies were also holding back electric car demand, Blume said.
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