Volkswagen Group launches electric small car offensive with sub-€30,000 models across multiple brands

The Volkswagen Group has announced plans to launch a new family of electric small cars across four brands, targeting a starting price of approximately €25,000 and aiming for a 20 per cent market share in Europe’s electric small car segment by the medium term.
The Electric Urban Car Family will include two models from the Volkswagen brand, one from Cupra, and one from Škoda, with all vehicles scheduled for market launch in 2026. The initiative represents Volkswagen’s strategy to tap into new market segments and attract different buyer groups in an expanding EV market.
All models will utilize the company’s developed MEB+ electric platform, though each will maintain distinct brand-specific characteristics. The vehicles will feature Volkswagen Group’s new unified battery cell technology, enabling ranges of up to 450 kilometers for small cars while leveraging economies of scale and manufacturing synergies.
The model lineup includes the Volkswagen ID. Polo hatchback and ID. Cross Concept SUV, both embodying the brand’s new Pure Positive design language. The ID. Polo GTI variant marks the first all-electric model from Volkswagen to carry the GTI designation, traditionally reserved for sporty everyday vehicles.
Cupra will contribute the Raval hatchback, designed with the brand’s characteristic sporty and unconventional styling. Škoda’s entry, the Epiq city SUV, targets families and lifestyle-oriented customers while showcasing the brand’s new Modern Solid design language.
The vehicles will incorporate premium technologies typically found in higher-end segments, including the latest generation of Travel Assist with lane change function and traffic light recognition. Additional features include LED matrix lighting, optional massage seats, and pre-conditioning capabilities through mobile applications.
Software and connectivity systems will match those found in larger Volkswagen Group models, featuring award-winning navigation with integrated charging planning and access to an app store with over 100 applications. All vehicles will include DC fast-charging capability as standard equipment.
Current market forecasts suggest the European electric small car segment will expand to approximately four times its current size within eight years. Volkswagen Group’s target of capturing 20 per cent of this segment would translate to several hundred thousand vehicles annually.
The company positions this initiative as part of its broader strategy to become a global automotive technology driver, with the central promise of delivering “Technology for the people.” All four models will be displayed together at IAA Mobility in Munich from September 7-12, marking their first joint public appearance ahead of the 2026 market introduction.
The Electric Urban Car Family represents Volkswagen Group’s attempt to democratize electric mobility by bringing advanced technologies to the entry-level segment while maintaining brand differentiation across its portfolio.