According to foreign media reports, Volkswagen plans to delay the mass production of the ID.2 small electric car because the European Union has lowered the requirements of the Euro 7 emission standards, which means that small internal combustion engine cars will be allowed to be sold for a longer period of time than previously expected.
Volkswagen unveiled the ID.2 all concept last March, on which the ID.2 will be based. Volkswagen’s original plan was to start production of the ID.2 in 2025, but due to the latest plans, the model’s production will be delayed until May 2026. While Volkswagen still plans to launch the ID.2 in 2025, the company will only produce it on a small scale and plans to start full-scale production in 2026.
The starting price of ID.2 is expected to be less than 25000 euros (equivalent to 27200 US dollars), and it will be higher than internal combustion engine models launched during the same period, such as Volkswagen Polo, which has a starting price of less than 22000 euros in Germany.
Image source: Volkswagen
Previously, Volkswagen and other European car companies predicted that due to the strict requirements of the Euro 7 standard, they may no longer be able to sell small internal combustion engine vehicles by 2030. However, under the influence of extensive industry lobbying, EU countries have agreed to maintain the current testing conditions and emission regulations for Euro 6 sedans and vans, which means that car companies can continue to produce small internal combustion engine vehicles without investing a lot of money in technological upgrades. Several car companies have previously stated that the technological upgrades caused by the Euro 7 standards will make it difficult for them to continue making profits.
However, delaying the mass production of the ID.2 will cause Volkswagen to fall behind other European competitors, such as Stellantis, which has already released the Citroen e-C3 small all-electric car that starts at 23,300 euros, as well as Chinese carmakers that are targeting the European market with plans to release low-priced electric cars.
Previously, Volkswagen brand leader Thomas Schaefer announced that the company would adjust its European production network to reduce costs. Schaefer told the media that the production plan for the new model will only be 80% of the maximum predicted sales. Compared to previous practices, Volkswagen’s production plans in the past were usually higher than expected sales to create a buffer zone to cope with situations where demand exceeded expectations. For example, if the sales department predicts that the annual sales of a car model will reach 150000 units, then the production plan for that car model will be 170000 units.
Schaefer said that such an adjustment would give the company more flexibility to respond to a decrease in new orders, so as not to quickly develop a large amount of overcapacity. He revealed that if a model sells more than expected, then additional demand will be met by increasing production shifts.
