[RahulNagaraj]

Volkswagen Group has announced that they have been working on compact electric vehicles "for some time". The new affordable electric vehicles are said to cost around 20,000 euros and will make their market debut in 2027.

The new affordable electric vehicles are part of Volkswagen's plans to crank out mainstream options to meet customer demands. This comes amidst Chinese automakers trying to capture the international market via aggressive global exports. Electric and plug-in hybrid vehicles already account for 50% of car sales in China, with cheap EVs costing as little as $5,000.



Thomas Schafer, CEO of Volkswagen, stated, "In order for electromobility to become widespread, attractive vehicles are needed, especially in the entry-level segment." However, he did add, "Despite the attractive price, our vehicles will set standards in the entry-level segment in terms of technology, design, quality and customer experience."

Volkswagen already has a new electric platform used by top-end models from its premium brands like Audi and Porsche. Coming to the lower end of the spectrum, Volkswagen Group is said to have lined up two compact cars from VW and Cupra, along with a small SUV each from VW and Skoda. The small SUVs will be unveiled sometime by the end of 2025.

Currently, Volkswagen's entry-level EV is the ID.3, which is priced at 40,000 euros.

Source: InsideEVs

Link to Team-BHP news

[SKC-auto]

Interestingly, VW is selling ID3 for less than $20K in China. Otherwise 2027 seems to be late.

[navin_v8]

I am extremely doubtful if VW would be able to match Chinese EV prices, "pound for pound". The Chinese EV industry is here to stay. Given China's expertise in EV battery technology, access to raw material for producing batteries, years of producing EV's while serving their domestic market (which itself would be the size of half of Europe), etc.

It would be very difficult for VW to match Chinese EV prices (I don't even need to mention the reasons as they are quite apparent). This is unless VW builds their cars in China and exports them from there. Still they won't be able to compete with Chinese local companies, unless they have some strategy in place. Again I repeat, China is here to stay in the EV business.

[volkman10]

EV sales drop 37%in Germany in July, with more buyers choosing ICE.

There is no sign of recovery for sales of electric vehicles in Europe's biggest car market.

- Germany recorded 30,762 EV registrations in July 2024, representing a 36.8 percent drop compared to July 2023.
- The EV share in Europe’s biggest market fell to 12.9%, from 20% in a year, following the government’s decision to cut subsidies.
- Other markets like Sweden and Switzerland also saw a decline in EV sales.


Link:

[volkman10]

To take the market by storm, BYD SEAL L 06 DM-i Wagon to cost less than 30,000 euros and threatens to sink the European market.







In China, it is a partner of BYD but in Europe there is no truce and the Asian brand is already preparing a new assault with fatal consequences, even for Toyota. It is called BYD SEAL 06 DM-i Wagon and is its first station wagon to be equipped with a PHEV with a good electric range.
And not only to the traditional German, French or Italian brands. Japanese companies are also going to sweat a lot, and especially the one that is a leader in electrification technology.
The new BYD SEAL 06 DM-i Wagon boasts an image despite having the characters of the Ocean range but stands out much more for its more than generous measurements. You can see them below and see that, at all, it is a compact, but a more than worthy contender to lead the D segment.
What it has revealed is that the new Seal 06 DM-i estate is equipped with a plug-in hybrid system (PHEV) that combines a 1.5-litre petrol engine that offers a maximum power of 101 hp and an electric motor with two power levels, 120 kW or 160 kW. That is, 163 hp and 218 hp, respectively.
A lithium iron phosphate (LFP) battery complements the set. With capacities of 10.1 kWh or 15.9 kWh, its maximum ranges homologated according to the Chinese CLTC cycle are 53 and 83 kilometers in electric mode, respectively.

Figures that, in the WLTP cycle, will be lower, but that are not a problem either. BYD only needs to install the Seal U 06 DM-i powertrain, and its 26 kW battery, to achieve a maximum range of 120 kilometers, if not close to 150 kilometers.

Link:

[LongDrives]

Originally Posted by volkman10

EV sales drop 37%in Germany in July, with more buyers choosing ICE.

..........

- Germany recorded 30,762 EV registrations in July 2024, representing a 36.8 percent drop compared to July 2023.

It is a good sign for European companies for a short term. It helps them get time to adjust for technology and production timelines, but not for long. Meanwhile the European companies are tying up with Chinese carmakers giving them technology helping them bring down the costs for the Chinese market, but when it comes to European market, the costs drive up a lot and they only come cheap when imported from third world countries. I think smaller countries in Europe but not a part of EU can do the job if they workout cost of labour well.

All the European tech is shared with Chinese but all the Chinese tech is not shared with the European partner companies. That is the whole point.

[Jeroen]

Originally Posted by LongDrives

It I think smaller countries in Europe but not a part of EU can do the job if they workout cost of labour well.
.

Which small countries are you thinking of? I can think of Austria, Lichtenstein and Norway. But I can assure you labour cost in those countries are en par, if not higher than in many EU countries.

It might come as a surprise to you that labour cost across the EU varies quite a bit! Even within one country, depending on the region there have been substantial differences!

The EU should do two things about this competitive advantage of Chinese over the EU

First and foremost they need to ensure that all C level and 2-3 levels below of every car manufacturer gets booted out immediately. These fat cats have shown themselves completely and utterly incompetent. It’s their job to ensure their companies have competitive offering in all their markets and they have failed miserable, whilst raking in unbelievable salaries and bonuses.

With that incompetent lot gone they should impose heavy duties on Chinese EVs for a limited number of years, so new management can turn this business around and be competitive again.

I have been on the board of one of our large outsourcing centres in China and even several years ago the salary gap with more western salaries was closing fast. There still is a gap, but not as much as many people believe

China gets it competitive edge because it is willing and able to do real long term strategic planning and tie up the necessary funding for many years of not decades. Yes, they steal all our good ideas and yes, it’s is a despecabke regime. But they don’t hide their long term goal, which is economic domination (or at least make everybody hugely dependent on them).

This is the big difference between China and much of the (western) world. The latter is focused on today, this week, this quarter, this year results. And gets it bonuses accordingly. Chinese think and act based on decades!

From a humanitarian and social perspective we need to oppose China all the way. From an economic point of view we need to get rid of them, or at least ensure we have credible alternatives so we have a better bargaining position.

Irrespective, the current leadership of all EU car manufacturers (and several non EU) have been completely and utterly outclassed.

They are now looking to the EU to come up with tariffs and so on, but I don’t think the EU should do so, without some major changes in the board rooms of these manufacturers.

Jeroen

[FlankerFury]

Originally Posted by LongDrives

I think smaller countries in Europe but not a part of EU can do the job if they workout cost of labour well.

Originally Posted by Jeroen

Which small countries are you thinking of? I can think of Austria, Lichtenstein and Norway.

I have a feeling LongDrives was referring to countries like Hungary, Croatia, Romania, and Poland.

All these countries manufacture automobiles or allied components already.

[digitalnirvana]

Originally Posted by Jeroen

Irrespective, the current leadership of all EU car manufacturers (and several non EU) have been completely and utterly outclassed.
Jeroen

Not just car manufacturers, almost every enterprise be it manufacturing, energy, software, medical. I cannot think of a single civilian use area (yes that includes chip design & manufacturing) where there is a great-filter-like barrier any more.

Significant course correction is needed as of yesterday, and a lot more research, innovation & development needs to be done. I don't see it happening unfortunately.

[LongDrives]

Originally Posted by Jeroen

Which small countries are you thinking of? I can think of Austria, Lichtenstein and Norway. But I can assure you labour cost in those countries are en par, if not higher than in many EU countries.

Originally Posted by FlankerFury

I have a feeling LongDrives was referring to countries like Hungary, Croatia, Romania, and Poland.

Exactly! I was referring to the non-EU countries formed formed division or Youguslavia, Czeck, Slovakia, Hungary Romania to name a few. There are many smaller countries that need not follow EU payment norms. I think they should develop them to mimick Chinese (close to) working conditions for efficient manufacturing.

[Jeroen]

Originally Posted by FlankerFury

I have a feeling LongDrives was referring to countries like Hungary, Croatia, Romania, and Poland.

All these countries manufacture automobiles or allied components already.

Originally Posted by LongDrives

Exactly! I was referring to the non-EU countries formed formed division or Youguslavia, Czeck, Slovakia, Hungary Romania to name a few. There are many smaller countries that need not follow EU payment norms. I think they should develop them to mimick Chinese (close to) working conditions for efficient manufacturing.

You both need to look up which countries are part of the EU:

The EU countries are: Austria, Belgium, Bulgaria, Croatia, Republic of Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain and Sweden.



Also, there are no EU payment norms when it comes to the amount of salary. There are rules about disclosing how much salary a certain position would pay and rules about equal pay, irrespective of sex, religion etc.

But no rules on how much a certain job should be. Minimum wages are regulated by each individual country. In general, Employment and social inclusion policies are primarily the responsibility of EU countries. This means that national governments decide on issues such as wage regulation, pensions systems and retirement age, and unemployment benefits.so not the EU.

When it comes to Europe and economics there are a few other relevant groups as well.

There is the Euopean Econmoic Area EEA (30 countries), the Euroean Free trade association EFTa (4 countries), and Schengen countries (29 countries). Of course we also have the Euro zone, (20 countries).

All of this in Europe, partly in the EU. By the way there are different definitions of Europe as well in terms how many countries are part of Europe. Let alone the EU. So it is all a bit confusing. ��



Jeroen

[dragracer567]

Originally Posted by Jeroen

Irrespective, the current leadership of all EU car manufacturers (and several non EU) have been completely and utterly outclassed.

Jeroen

I might be wrong but apart from the South Koreans, EU car manufacturers seem to be the only ones that can atleast put up a fighting chance against the Chinese onslaught. The Japanese have completely lost it except for Toyota and Mazda but that's because they haven't gone all in on BEVs yet, the ones they already sell in Europe are sub-par. As far as the Americans go, the traditional companies are making EVs that no one will buy since everything's all politicized there now, liberals won't buy those giant vehicles while Conservatives won't buy EVs, and these cars won't work outside the North American market, nevertheless. Tesla, meanwhile, hasn't brought in a new model in years, only facelifts. Other Silicon Valley brands like Lucid and Rivian are still quite niche and the former sold out to the Saudis while the latter is working with VW now (which seems like a good move).

As far as I can see, EU manufacturers - mainly the VW Group, Mercedes and BMW are the only ones apart from Hyundai/Kia, who are trying hard to diversify, whether they will succeed is a question that has to be answered by time itself.