Volkswagen unveiled the ID.Polo on Wednesday, pricing it at about €25,000. The model anchors a new family of four entry‑level electric cars slated for launch this year under the VW, Škoda and Cupra badges. Joint development saved roughly €650 million by sharing a common platform and up to 80 % of components, with all units built at a single Spanish plant to exploit lower labour costs. Chinese players such as BYD intensify the pressure.

The Spain‑based line‑up gives Volkswagen a cost edge as it trims tens of thousands of jobs in Germany and pursues a €1 billion savings target by 2030 through regional production coordination. Analysts note that cheaper output narrows the profit gap between EVs and the group’s conventional models. The ID.Polo’s launch price undercuts BYD’s Dolphin Surf, which starts just under €23,000, while the even cheaper ID.Every1, due next year, will begin at €20,000.

Dealer chief Alexander Sauer‑Wagner says the ID.Polo restores Volkswagen’s competitiveness in the small‑car segment, a historic stronghold. Independent analysts add the affordable range could draw buyers who have so far shunned electric vehicles and help the group break into higher‑volume markets such as southern Europe, where EV adoption lags. With the new models in production, Volkswagen now has a tangible tool to wrest market share from Chinese rivals.