Volkswagen plans affordable EV models to power electric vehicle sales in 2026

Volkswagen Passenger Cars, widely known as “VW,” estimates that electric vehicle sales will improve in 2026. To deliver this great success, the top German producer has committed to a lineup of low-cost plug-in vehicles.

The brand stated on Tuesday, January 13, that it managed to maintain an average 2025 sales performance, with 382,000 units of EV deliveries, primarily driven by a solid sales performance in Europe that offset sluggish demand in China.

Volkswagen aims to position itself for future growth and profitability in 2026

Regarding VW’s anticipated sales growth, sources close to the situation, who wished to remain anonymous as the talks were private, hinted that the car manufacturer expects the release of new vehicle models, such as the compact ID. A Polo worth around €25,000, or approximately $29,155, to enhance its 2026 sales.

Martin Sander, a member of the Executive Board for Sales, Marketing, and After Sales at Volkswagen Passenger Cars, commented on the situation. 

To achieve these sales, the company publicly announced that it is teaming up with leading Chinese smart electric vehicle manufacturer Xpeng Inc. to enhance its offerings in the world’s largest vehicle market.

It is also worth noting that Volkswagen’s 2025 average sales performance was hindered by other significant obstacles, apart from the decline in car demand in China. Some of these challenges included US President Donald Trump’s tariff policies on imports.

In the meantime, with VW planning to boost its sales, credible sources have confirmed that Chinese brands are beginning to market themselves in Europe at transparent, market-average pricing for vehicles such as BYD Co.’s Dolphin Surf hatchback, priced at around €23,000 in Germany. This development comes as competition in the car industry continues to intensify.

To stay competitive in the market, sources noted that Volkswagen’s European rivals are expanding their product lines with the introduction of more budget-friendly electric vehicles. 

To support this claim, reports indicate that Stellantis NV’s Citroën ë-C3 city car, which initially had a starting price of approximately €23,300 in several European markets, now has a starting price of approximately €14,990 in France, particularly for clients who qualify for a government-subsidized leasing program.

Another key player in the European car market that initiated the same move was Renault SA in November last year. At this time, the French multinational automobile manufacturer launched the new Twingo, a retro-styled city car designed to make EVs more affordable. It will be available on the market for less than €20,000 and will be ready for purchase this summer.

The car market encounters stiff competition 

Renault adopts the decision to launch more budget-friendly car models at a time when automobile manufacturers in the European market are implementing effective strategies to counter the market share gains of Chinese competitors such as BYD Co. 

However, sources with knowledge of the situation have uncovered that the transition to electric vehicles has presented several challenges, partly due to a lack of desirable options for average consumers. 

On the other hand, Renault revealed that it depends on China to maintain the Twingo’s price affordable to clients. Notably, China produces about 40% of the car’s parts, especially by value. With this finding, analysts predicted that the competition in the car market will become more intense this year. 

For instance, they noted the introduction of massive multinational automotive corporations, Stellantis NV and Volkswagen AG, which are set to compete with the Twingo, as their starting prices are also affordable and aimed at the general public. 

Nonetheless, even with this assertion, Fabrice Cambolive, Renault Group’s Chief Growth Officer and CEO of the Renault brand, still insists that there is a high demand displayed for smaller urban cars; therefore, holding onto the belief that the new Twingo will satisfy that need.

During a press conference, Cambolive admitted that, “It’s challenging to include all necessary safety features in a compact car,” further adding that, “all manufacturers have moved away from this small-car segment, but this segment is crucial for making EVs accessible to everyone.” 

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