Cheap talk: Volkswagen to bed Renault in race to build sub-$30k EV | reports

Volkswagen and Renault are primed to join forces to work today to develop a new family of
electric cars that will be priced less than €20,000 ($A32,000).

According to German newspaper Handelsblatt, both VW and Renault are considering the
deal that will see both car-makers produce up 250,000 of its bargain basement-priced
electric cars.

Created to be “affordable to the masses” it’s thought the new EV could be built on a new
architecture that will slash costs further than cars based on the VW Group MEB, or the
Renault’s CMF-EV architectures.

Encouraging both to work together is the influx of cheap Chinese EVs that have flooded European markets eroding established European brand’s market share in all segments.

An entry EV will also help prepare for the next wave of bargain-priced EVs that are already
on sale in China.

Latest JATO Dynamics research suggests that the average EV price in China has already fallen
to just €31,000 ($A50,500) which is completely at odds to the average price of an electric
car sold in Europe which was €65,000 ($A105,500) in the first half of 2023.

Before the news of the new deal, both Renault and Volkswagen had already declared that
they were both readying cheaper electric cars.

Just last month the French car-maker unveiled its most affordable EV yet, the cute battery-
powered Twingo that was said to have been developed for a list price of less than €20,000
($A32,000).

Volkswagen, meanwhile, says its most affordable EV will be on sale by 2025 with a price tag
of less than €25,000 ($A41,000).

A second VW-branded EV is also in the works that’s it’s thought Renault might co-
develop. That car will be priced from less than €20,000 ($A32,000) and be on sale in the
second half of this decade.

Following the news it might be collaborating with VW, a spokesperson for Renault told
Reuters: “We are in different discussions but nothing has been finalised.”