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Volkswagen To Challenge Tesla With Lower Priced Entry Level Electric Car


11/19/2018


Volkswagen To Challenge Tesla With Lower Priced Entry Level Electric Car
German car maker Volkswagen (VW) plans to compete with US based electric car maker Tesla on price as VW is planning to develop a subcompact crossover to its all-electric I.D. range which would be priced at about $21,000 which would be more affordable than the Tesla cars, according to media reports. The addition of this new model would expand the portfolio for its zero-emission electric cars.  
 
Sources also reportedly told the media that the car maker plans to manufacture the mew model at its factory in Emden, Germany, but also warned that the supervisory board of the company is yet to grant final approval for the project.
 
It has been announced by VW that its full electric range of cars would be available in the market starting after 2020 and VW estimates that it would be able to sell about 200,000 units annually. At that rate of production and sale, the company would potentially be selling the same number of cars as that of Tesla’s Model 3 which is the lowest priced electric car of the US electric car maker and is slated to be launched in Europe sometime in 2019.
 
The ambitious plan which has been code named the I.D. range is being considered to be the most aggressive of the production plans for electric vehicles within the global auto industry. Under this plan, VW wants to offer a range of 50 electric car models to customers across the group, which includes brands such as VW, Seat and Skoda that sells more in terms of volume than the other brands. The aim of VW to offer less expensive electric car models compared to Tesla will rely on the usage of its massive scale and the comp[any hope to take advantage of the early bird theory in the electric car market which is slated to increase exponentially globally as more car makers move to develop their own zero emission vehicles. .  
 
VW also intends to increase production of electric vehicles in addition to its production unit in Anting and a site in Foshan where only all electric battery-powered cars would be manufactured as of 2020. The company also plans to make use of its only US vehicle factory in Chattanooga in North America to supply electric vehicles to the market.
 
There were no comments made by VW.
 
The company had dubbed its global production push for electric vehicles as project Polaris which forms a part of its strategy of a large-scale overhaul which aims to distribute its capacity to manufacture vehicles throughout the world and across its 12 brands. The company also hopes to make savings of billions of euros in its ramp up production of electric cars making use of closer cooperation between brands and different strategies such as reduction in production of its slow selling models, trimming production and colour options.
 
(Source:wwwllivemint.com)