Small electric vehicles will be more expensive than current options, says Volkswagen

The low-income group may not be able to afford the new small electric vehicles in the near future as it will be slightly more expensive than the current entry-level options!

By: | Updated: January 21, 2019 12:39 PM

With rising fuel demands and worsening pollution, the world desperately needs an alternative option to the current fuel needs. With automakers such as Tesla who has given hope to the world with its fully electric offerings, other automakers are slowly but steadily turning towards electric vehicles. This shift in the current fuel needs is sure to put a burden on the current carmakers, which have already started adapting to future needs.

Since the cost of production of electric vehicles is significantly higher to the current cars, the chairman of the Volkswagen group, Hans-Dieter Poetsch, said in interview with the Welt am Sonntag newspaper, that "We have the clear goal of making electromobility accessible to a broad section of the population, that is to make it affordable. The current price level cannot stay the same if these cars are equipped with electric motors. Therefore, it will inevitably lead to significant price increases in the small car segment.”

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The chairman suggested that entry-level electric vehicles will be significantly more expensive than the current options and hence they will be out of reach to many under the low-income group.

The company also announced previously that it might also be coming up with new plans to cope up the mass production needs of electric vehicles to meet the European Union targets.

The VW group has planned to invest close to 44 billion euros in the development of electric vehicles, autonomous driving, and new mobility services in the next five years.

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Image Source – Reuters!

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