Volkswagen has announced that its upcoming entry-level electric vehicle, the ID.Every1, will be produced in Portugal, as part of affordability push. Expected to hit the market in 2027 with a price tag of around €20,000, the compact city car will be built at the company’s Palmela factory, located 40 kilometers south of Lisbon.
The announcement was made by Volkswagen brand chief Thomas Schäfer during a press briefing in Wolfsburg, ahead of the group’s annual financial results.
The Palmela plant, which employs around 5,000 people and currently manufactures the T-Roc SUV, will play a key role in Volkswagen’s efforts to regain lost ground in the affordable electric vehicle sector.
Later than the competition
The German carmaker has lagged behind rivals in this segment and is now seeking to compete with budget-friendly models such as Stellantis’s Leapmotor T03, already available for around €20,000, as well as upcoming rivals including the electric Citroën C3, Dacia Spring, and Renault Twingo – all expected to launch by 2026.
With a range of 250 km and a top speed of 130 km/hour, the ID.Every1 is designed as a compact urban vehicle, catering to private buyers and commercial fleets looking to cut emissions.
The model is part of Volkswagen’s broader restructuring efforts. The company has also announced that the ID.2, a slightly larger EV, will be produced in Spain from 2026 at a starting price of approximately €25,000.
Together with the Spanish turnaround fund PERTE, the German car builder invested €10 billion to restructure Seat facilities for electric mobility needs.
Skepticism in Germany
The decision to build the ID.Every1 in Portugal comes at a crucial time for Volkswagen and might be met with skepticism in its home country. The company has confirmed plans to cut 35,000 jobs in Germany and shut down two factories—an unprecedented move in its history.
Volkswagen has often been seen as a late entrant to emerging vehicle segments, preferring to perfect its offerings rather than rush to market. With its renewed focus on affordable electric models, the company hopes to reassert its position as Europe’s number one carmaker and globally the second largest after Toyota.
The small ID models are primarily developed for Europe, but they could later expand to emerging markets, such as India and South America, where electrification is gradually gaining traction.
Return to traditional controls
In an interview with Geran media outlet Auto Motor und Sport, VW brand boss Thomas Schäfer said that he’s currently reducing the complexity of the model lineup. This means there won’t be successors for the Touran or Sharan. Instead, the company is focusing on the ID. Buzz and Multivan.
The brand will also strengthen its focus on its SUV portfolio, particularly in the B and C segments, with electrification as a central technology. With the Tayron and Tiguan, VW considers itself well-equipped, offering efficient combustion engines and plug-in hybrids with up to 130 km (81 miles) of electric range. The T-Roc remains the best-selling Volkswagen in Europe.
Additionally, VW announces a return to traditional controls like physical steering wheel buttons and external door handles, responding to customer preferences for functionality and ease of use.
The all-in-touchscreen philosophy was adopted by former VW Group boss Herbert Diess and modeled after the Tesla approach, of which he was a big fan.
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