Volkswagen has firmly explained its choice to avoid badge engineering by refraining from creating Skoda, SEAT, or Cupra versions of its upcoming city car based on the ID.Every1 concept. The automaker emphasizes that launching such a compact vehicle is essential in a fiercely competitive market, especially as Chinese brands continue their aggressive expansion into Europe. Kai Grünitz, the Volkswagen Group Board Member for Technical Development, explained exclusively that having a dedicated entry-level model is crucial. “It’s necessary to have an affordable entry vehicle," he stated, "because if we don’t, Chinese brands will fill that gap, and young drivers who first get their license might stick with those brands long-term.”
Developing a small car on an economical scale remains a significant challenge, even for a giant like Volkswagen. Grünitz admitted it’s no simple task to engineer, design, and produce such a vehicle within a European supply chain while keeping the price below 20,000 euros. He highlighted that the process involves complex logistics and engineering, making it a tough but necessary endeavor. Back in 2011, Volkswagen launched a trio of city cars: the SEAT Mii, Skoda Citigo, and Volkswagen up!. These models once dominated the inner city, but the segment has shrunk dramatically over the years.
Today, used versions of these cars still circulate strongly, with the latest up! listed at around 14,750 euros on the used market, reflecting their continued popularity despite the market’s decline. Volkswagen’s decision not to badge the ID.Every1 as a SEAT, Skoda, or Cupra reflects a strategic move. Grünitz explains, “While large segments like superminis can support multiple brands, the city car segment isn’t big enough to sustain three. It’s simply not viable for all brands to be represented there.” Instead, Volkswagen aims to dominate this space with its own dedicated offering, expecting comparable sales volumes to the up!, Mii, and Citigo during their lifecycles. Although it’s unlikely that the ID.1 will surpass its predecessor’s sales by a factor of three, Grünitz’s remarks suggest VW believes its new city car can attract customers who might have previously considered Skoda or SEAT options. This aligns with earlier comments from Wayne Griffiths, the former CEO of Cupra, who emphasized the importance of investing in the entry segment. In an interview, Griffiths highlighted that brands must contribute to development costs and make targeted investments to succeed. “Volkswagen needs an entry-level brand,” he said, “to attract a younger audience and promote affordable electric mobility.”
So why has Volkswagen chosen to lead this initiative rather than SEAT or Skoda? Grünitz explains succinctly, “Because it’s in our name: People’s Car. That’s the core reason for doing this ourselves.” The emphasis on the ‘people’s car’ underscores Volkswagen’s mission to deliver accessible mobility solutions, especially in a market increasingly shifting toward electric vehicles. Looking ahead, Volkswagen plans to revamp some iconic models with next-generation electric variants, including the ID.Polo and possibly the ID.Tiguan in the coming year. There is speculation that the ID.1 might re-emerge under a new name, like the ID.Lupo, reviving the classic Lupo badge after more than twenty years. Such moves could further strengthen VW’s presence in the compact electric segment, bringing a small, accessible EV into the hands of city dwellers across Europe. This new city car is expected to share many design cues with the ID.Every1 concept, blending practicality with a modern electric drivetrain.
While specific technical details have yet to be fully disclosed, estimates suggest the vehicle might feature a modest battery pack capable of delivering around 250 to 300 km of range on a single charge—perfect for daily urban commuting. Power output is anticipated to be approximately 50 to 70 horsepower (37 to 52 kW), making it an ideal car for new drivers or those seeking affordable, eco-friendly mobility. Price-wise, Grünitz hints that Volkswagen wants to keep the car below the 20,000-euro mark, which would translate roughly to 15,200 euros, making it accessible to a broad audience. This positions it firmly as an entry-level vehicle designed for city life, with a focus on efficiency, affordability, and practicality. In summary, Volkswagen is committed to establishing a dedicated, budget-friendly city electric car that embodies its core principles of practicality and accessibility. By doing so, the brand aims to secure its foothold in a crowded market and guard against losing young buyers to Chinese competitors.
This strategy—centered around a compact, economical, and stylish urban EV—may just set the stage for a new chapter in Volkswagen’s electric journey, ensuring that the 'people’s car' remains relevant for generations to come. Check out the very best car deals available in our catalogue.