The company shared its first images of a new vehicle expected to be called the ID.1, which will go into production from 2027.

The low-cost EV is intended to go head-to-head with all-electric brands from Chinese carmakers such as BYD, which overtook Tesla in British sales for the first time last month, ironically as the Brits moved away from the brand tarnished by its association with Elon [roman salute] Musk.

It appears that the automaker had a vision of the obvious – the things that are holding the EV industry back is the fact they are all top of the range models which are out of the price range of most people who don’t want to sell their children for medical experiments to go to the shops.

Previous images of the vehicle suggest it will be an electric hatchback. Thomas Schäfer, the VW chief executive, said the new model would be "an affordable, high-quality, profitable electric Volkswagen from Europe, for Europe".

Quentin Willson, the motoring journalist and founder of FairCharge, said the car could be a "possible China EV killer".

Dan Caesar, of Electric Vehicles UK, added: "Cheaper EVs are exactly what legacy auto-makers need to be competitive during this critical time. We would expect the ID.1 to be warmly welcomed by motorists."

Ginny Buckley, of consumer advice website Electrifying, said Volkswagen had been "clear about its intent to compete with China's low-cost EVs"...

The German carmaker is planning to cut 35,000 jobs by 2030 as it grapples with stalled demand for EVs in Europe and growing competition from Chinese rivals.

Volkswagen executives describe the upcoming EV will be a "true Volkswagen for everyone," according to the article

It notes that the number of EVs sold across Europe "fell by three per cent to 3 million during 2024, according to data from analysts Rho Motion."