As Tesla have been slashing prices as much as they can, other manufacturers are struggling to follow suit, at least whilst maintaining positive profit margins. This is an extraordinary achievement Tesla have pulled off, reaching double-digit margins and still offering the best value electric vehicle, as now thanks to tax incentives it's possible to purchase a Model 3 for around $35,000 in some U.S. states which is just astoundingly affordable for what you get, and almost 50% cheaper than in the U.K.

The race to the bottom appears to be on and many companies are struggling to remain competitive or are collapsing entirely, which is a shame for the world's transition to sustainable transportation, but in the end seems to be very good for the consumer. Since cheaper and cheaper cars are being touted to fill a largely unaddressed void in the market, the options available to the majority of people are becoming increasingly enticing.

The details we have so far

The latest such unveiling comes from V.W in the form of their new ID. 2all based on their modular electric drive (MEB) platform, aimed to cost just ¢25,000 with up to 279 miles of WLTP range and can charge from 0 to 80% in just 20 minutes, great! This would be a very desirable car not just for the buyer, but Volkswagen brand's CEO Thomas Schaefer claims it must have margins of at least 6%, small compared to Tesla, but huge compared to most other auto makers, and it’s exactly what they need to focus on since they're expecting a $2 Billion loss this year, after a further $2 Billion lost in 2022.

From the pictures it looks like, as most are, they're adopting a much more minimalistic design with a centre screen for the majority of functions, a driver's binnacle display and a few buttons for essentials controls like windows and indicators. Oddly there still seems to be a navigation wheel for the menus and I'm curious... If instead of a touchscreen, that's a more complicated user experience that could so easily be improved, and if in addition to a touchscreen then it's a waste of materials and design time, adding cost and labour where not needed.

The rest of the cabin though looks fairly sleek with ambient lighting aplenty, the exterior I’m sure also appeals to some and I expect it will have the usual durable, high-quality feeling Volkswagen are known for even at this price point.

Specs and ambitions

The specifications are nothing to write home about, but are not intended to break any records. If their concept bears any resemblance to the final product we can expect the following:

• Nearly 300 miles of WLTP range

• 222 hp (166 kW) motor

• 0 to 60 mph (0-100 km/h) in under seven seconds.

• Charging to 80% in under 20 minutes (no speed stated)

• Storage volume of 490–1,330 litres

• 12.9” touch display

The automaker plans for at least one in every five of their vehicles sold globally to be electric by 2025, with the production version of the ID 2all being one of ten EVs launched by 2026, including the new ID.3, ID. Buzz and ID. 7, followed-up by a compact electric SUV in 2026. They also claim to be working on a sub ¢20,000 car, of course this all must be taken with a grain of salt. However, since the ID. 2all is set for production for European markets in 2025, there's not so long to wait and see just how well they're able to follow-up on their promises.

Why only now?

It does beg the question though, if they're able to produce such cheap, profitable, and environmentally friendly cars, why on earth has it taken this long to do so?! Only thanks to the absolute power of Tesla doing all the heavy lifting until eventually forcing them into it, it's a bizarre business strategy to have ever pushed against these changes, casting serious doubt and red flags in the company's management principles, priorities, and ethical decision-making. From the brand that, lest we forget, brought us the infamous Dieselgate scandal.

One more question that's recently surfaced is whether they will opt to adopt the NACS connector (Tesla's patented North American Charging Standard), which would allow them to use over 12,000 superchargers that are open to other vehicles and join the bandwagon with other major players like Ford and G.M. It seems likely they'll stick to CCS as is most common in Europe for the time being, but it would be so nice to see that spread across the pond to replace the heavy, redundant plug with such an elegantly simple design that just works - see the difference below:

If they can really deliver this according to the specs and timeline they've stated it could very well be a huge seller, there will certainly be other competition by that time, but hitting such a low price point would stand out from all but the most budget of personal transportation. It would be great for V.W's hopes of seeing 2030 and beyond, great for customers and excellent for the switch to renewable transport, accelerating Tesla's master plan. I'm really hoping they can do it, but I remain realistically skeptical until this concept vehicle manifests in the real world.

Read the official press release here: https://www.volkswagen-newsroom.com/en/press-releases/world-premiere-of-the-id-2all-concept-the-electric-car-from-volkswagen-costing-less-than-25000-euros-15625