Volkswagen Group is building four small electric cars in Spain. A modified version of the current MEB platform modular system is also in the works, which will be used not only by the core brand but also by Seat's sister brands, Cupra and Skoda. There are now more details about the plans.
Spain is set to become a key player in Volkswagen's electrification strategy, as the German carmaker plans to produce a total of four new small electric cars for the VW, Skoda, and Cupra brands at two plants in the country. The announcement was made by VW brand CEO Thomas Schaefer at the reveal of the Volkswagen ID.2all concept in Hamburg last week, which previews the ID.2 subcompact hatchback that will be one of the four models.
The Volkswagen ID.2 will be built at Seat's Martorell plant near Barcelona, together with the sporty crossover Cupra UrbanRebel, which was unveiled as a concept at the Munich Motor Show earlier this month. Two small electric SUVs - one for Skoda and one for VW - will be manufactured at the VW plant in Pamplona, where the Polo is currently being built. According to Automotive News Europe, Volkswagen's SUV will be called ID.2X.
All four small EVs will be based on VW Group's MEB platform, which is FWD-only on the Volkswagen ID.2all. Schaefer said that the economies of scale and the fact that the cars will be made in Spain, where wages are relatively low, will help keep costs down. The production of the four electric cars in Spain is part of a 10 billion euro project by the Volkswagen Group with partners in the country. A central component is a "Gigafactory" in Valencia, which is operated by the battery subsidiary PowerCo.
Schaefer said that the Volkswagen ID.2 would be the only one of the four models that would cost less than 25,000 euros. The Cupra UrbanRebel is positioned as a more sporty, upmarket model, while the small electric SUVs are likely to command a higher price due to their body style.
Batteries from the group's planned new battery factories will be used in all four models, initially in Salzgitter and later in Valencia. The entry-level models are equipped with a lithium-iron-phosphate (LFP) battery, which is cheaper than lithium-ion batteries. The longer-range variants will use a nickel manganese cobalt (NMC) chemistry.
Production will start in 2025 with the Cupra UrbanRebel, followed by the other three cars within one and a half years. Volkswagen Group's investment is projected to give the Spanish economy a 21-billion euro boost by turning the country into a European hub for electric vehicle and battery manufacturing.
Volkswagen Group is focusing on small electric cars in Spain and a more affordable EV with a base price under 20,000 euros. The company said at the launch of the ID. 2all last week that it is considering such a model, which could get the Volkswagen ID.1 badge when it enters production sometime in 2027.
Volkswagen Group is pushing ahead with its electrification goals, aiming to become the global market leader in e-mobility by 2025 and to achieve net zero emissions by 2050. The company expects to sell more than 1 million fully electric vehicles this year and to increase its EV share to over 50% by 2030.