Volkswagen is preparing a teeny £17k electric car for 2027

Volkswagen has confirmed plans to make a small electric car to launch in Europe with a £17k (€20,000) price point. It reckons it’ll have the thing ready for 2027.

Apparently this all-electric, entry-level model is a whole new project aiming to be super-affordable – that is, cheap enough for newly qualified drivers to buy.

Project TinyCar will be smaller than the forthcoming VW ID.2 and Cupra UrbanRebel, already slated for release in 2025. Those £21k (€25,000) EVs from Cupra and VW are part of the 'Brand Core Group' plans to make motoring affordable, though not quite as affordable as TinyCar. (And still not quite as affordable as a £15k Dacia Spring.)

Thomas Schäfer, boss of the VW brand, said: “Our brand promise is: electromobility for all. This task has become more demanding due to rising energy, material, and raw material costs.”

Chinese newcomers like BYD are likely the motivation behind Operation TinyCar. Following a ‘from Europe, for Europe’ strategy, VW said the smaller model will be built in various European localities to keep both production emissions and costs down. Though Schäfer added that 'political support and competitive framework conditions' are needed for success.

But there's nothing like a bit of 'first-car nostalgia’ as a wildly effective marketing tool. Oliver Blume, VW Group chief, said: "Generations of people associate the strong brands of the Volkswagen Group with their first car – and with affordable mobility. As a group with strong brands, we continue to assume this social responsibility to this day."