Volkswagen might cooperate with Renault for 20,000 euro EV

Volkswagen (VW) is considering a partnership with French automaker, Renault to produce a 20,000 euros ($21,476) electric vehicle (EV) car, reports Handelsblatt on Friday.

VW is looking to lose up the price of its EV offerings and make them more affordable for the customers.

The talks between the two car companies are still at an early stage and move subsequently based on the outcome of the terms from both sides.

VW and Renault are planning to produce 200,000 to 250,000 vehicles per annum, suggests the report.

A Renault spokesperson said that the company is engaged in talks for different cooperations for small and entry-level EVs.

Volkswagen Electric Vehicle ID. 2all

An average EV in the first half of 2023 cost over 65,000 euros compared to just 31,000 euros in China.

In this segment, Renault also promised to launch a new EV Twingo at less than 20,000 euros. On the other hand, Volkswagen aims to bring an EV below 25,000 around 2025.

VW previously said that it was also working on a 20,000 euro vehicle but remained mum since then.

The latest move comes as the competition from EV giant Tesla continues to rise. A few days ago, Tesla CEO, Elon Musk said that “We are working on a low-cost electric vehicle that will be made at a very high volume” in an interview with Sandy Munro, owner of Munro & Associates.

However, the Tesla chief also has not confirmed a specific launch date. Read more below.